Here is the synopsis of our sample research paper on The Sarbanes-Oxley Act And Nonprofits. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 5 page paper. The Sarbanes-Oxley Act of 2002, also known as the American Competitiveness and Corporate Accountability Act of 2002, was passed in response to the many accounting scandals in private sector corporations. There are provisions in this Act that apply to everyone, however. This essay discusses how nonprofits are being affected by the Act. Bibliography lists 5 sources.
Page Count:
5 pages (~225 words per page)
File: MM12_PGsarbn.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
in private sector corporations, and, most specifically, in response to the Enron, Arthur Andersen and WorldCom debacles (Hamel, 2003; Heinz, 2003; Gonzales, 2005). The Sarbanes-Oxley law governs publicly held companies
but it "will likely have a far-reaching, subtle impact on nonprofits" (McLaughlin, 2003). Actually, Hamel (2003) reminded readers that certain provisions in the Act apply to everyone: "Sarbanes-Oxley contains a
number of provisions, among them new and sweeping criminal provisions, that apply to everyone, including nonprofit organizations and their officers and boards." For instance, the provisions regarding "obstruction of justice
by document destruction and retaliation against informants" (Hamel, 2003) are two components that apply to all organizations (Hamel, 2003). Heinz (2003) explains: "The Sarbanes-Oxley Act of 2002 imposes new federal
regulations on the auditors of public companies and makes significant changes in the responsibilities of corporate officers, directors and other financial services professionals." The bill includes mandates for internal controls
and audits, increases the liability for corporate directors and accounting professionals and it restricts the services that auditors can provide to companies and organizations (Heinz, 2003). This law also "directs
changes in some audit and financial reporting practices of the U.S. General Accounting Office (GAO) " (Heinz, 2003). Furthermore, the criminal issues are directly applicable to any nonprofit that receives
any federal money at all, no matter how little or how much (Hamel, 2003) The implications for nonprofit organizations is significant, mostly because the financial practices and ethics of
certain large organizations, like the American Red Cross and United Way were under called into question in the not too distant past (Heinz, 2003). What Sarbanes-Oxley does is leave the
door open for similar laws for nonprofits to be enacted (Heinz, 2003). It should be noted that nonprofit agencies are held to many requirements from a variety of government agencies,
...