SOX Act.docx Case Study: Effects of Sarbanes-Oxley(SOX) Law on Organizations Name Ins

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SOX Act.docx Case Study: Effects of Sarbanes-Oxley(SOX) Law on Organizations Name Institution Introduction In the year 2002, Oxley Michael, and Paul Sarbanes drafted a motion seeking to intro... duce a law that would then shield investors from accounting scandals that were initiated by the corporations. Various accounting-related fraudulent activities in major IT firms such as Tyco and WorldCom had been reported in early 2000. The Sarbanes-Oxley (SOX) Act was enforced in 2006. Reforms were initiated to improve internal auditing among the Companies and protect them from fraudulent activities. The law further directed that all the organizations involved in public trading provide reports on internal accounting to the SEC annually to ensure compliance. To ensure strict adherence, the SARBOX Act (2002) has a provision for severe civil penalties against firms that demonstrates non-compliance or those that do not receive necessary certification for internal auditing or financial disclosure within the given time frame. Also, the law dictates that the economic data includes a clear Internal Control Report (ICR) as proof of security for financial information. This paper seeks to discuss and gain insight into the applicability of the SARBOX Act (2002) within the context of cloud computing technology. Effects on Organizations with Cloud Presence Cloud technology has been in existence for decades, especially among the Companies that provide virtual services like Google, Oracle, Microsoft, a. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. .. . . . . . . . . . . . . . . . . . .. . . . . [Show More]

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