High Court Ruling Only Tweaks Sarbanes-Oxley Act

ARTICLE SYNOPSISThe High Court Ruling Only Tweaks Sarbanes-Oxley Act term is about the Supreme Court ruling in Free opening Fund vs. PCAOB indicating that Sarbanes-Oxley (SOX) will remain fully operative as a law with the exception to remove members of the Public Company Accounting superintendence Board. Prior to the SOX Act, the removal of member was said to violate the appointments clause of the Constitution. In addition to discussing the ruling, the following will explain how the Sarbanes-Oxley act affects ethical decisions in todays business and the immoral penalties that it provides. ETHICAL DECISIONThe process of fashioning decisions consists of ethical attribute that include integrity, transp atomic number 18ncy, and accountability. The Sarbanes-Oxley Act has the effect of ensuring investor confidence done the existence of regulatory provisions effective in enhancing ethical standards. In the case of Free Enterprise Fund v. PCAOB shows the extent to which the issue of d isengagement of world powers is upheld. The main argument in the case was the excess power given to the gameboard as it was appointed by Securities and Exchange Commission (SEC) some other than the president. This means that the board had regulatory non-restricted power by the executive. According to the ruling, PCAOB has the power to continue overseeing public company audits with the intention of protecting investors interest (Jaeger, 2010).This is a major development as it relates to ensuring that prudish measures supports the scope of executives ensuring that proper decisions are effective inprotecting the interests of investors. The courts ruling indicated that PCAOB board members will be removed from office by SEC at will other than for good cause (Jaeger, 2010). However, other programs of PCAOB remain insensible(p) by the decision of the court.It is important to note that the enactment of the SOX Act is a major development that has ensured integrity in decision-making proc ess essential in protecting the integrity of investors. As a result of maintaining proper books of accounts and ensuring proper internal controls are in place, the SOX Act ensures ethical decisions are make enhancing the integrity and transparency. Ultimately, the impact of the SOX Act is to protect the interest of investors through measure of accounting frauds.CRIMINAL PENALTIESThe SOX Act provides for various criminal penalties under certain sections. region 802 of the SOX Act provides criminal penalties for influencing the United States agency investigation, which is also known as proper administration. The criminal penalty punishes any psyche who knowingly falsifies discipline or document with the intention of obstructing a particular investigation. An individual clear be put in jail if fix guilty of this criminal offense for a period not exceeding 20 years. other criminal penalty under the SOX Act is retaliation against whistleblowers (Jaeger, 2010).This relates to any pe rson who takes harmful action against another person with the intention to retaliate. A alright or imprisonment for a period not exceeding 10 years can be placed if a person is found guilty for this criminal offense. Section 906 of the SOX Act provides for criminal penalties for CEO or CFO financial statement certification. According to this section, any corporate ships officer who fails to certify financial reports is liable for a jail term not exceeding 20 years.Reference Jaeger, J. (2010). High Court Ruling Only Tweaks Sarbanes-Oxley Act. Accessed