Article Review Format Guide Essay

The oblige discusses whether the Sarbanes-Oxley feat and the subsequence laws were the correct solution for the problems that arose from the Enron and WorldCom bankruptcies. The article illustrates how the different rules and legislature affect different size business, and the ramifications that resulted for companies that must take up the Sarbanes-Oxley mask. The authors of the article also conducted a study on whether or non imposter of the financial statements was in direct correlation of businesses filing loser (Nogler & Inwon, 2011, p. 68) like in the cases of Enron and WorldCom. The results found that the larger the troupe that filed bankruptcy the to a greater extent likely that securities charade litigation and general overstatement of the revenue and assets of the company occurred (Nogler & Inwon, 2011).LEGAL ISSUELegal issues were rampant in the article. For instance, with the issuance of the Sarbanes-Oxley Act of 2002, companies chose to go dark to no longer trade domainally, (Nogler & Inwon, 2011, p. 67) in holy order to not have to comply fully with SOX. The article also hollo whether it is fair or justto make smaller companies follow the analogous exact rules and fines of such articles as Article 404 of the SOX Act.MANAGERIAL PERSPECTIVE tommyrot is a real threat to the financial stability of a sens and even the country. The legal issues presented in the article show how damaging fraud truly is. Of the over 1,200 companies that filed for bankruptcy in the study, 77.8% had some sort of fraud (Nogler & Inwon, 2011). These numbers show that laws like Sarbanes-Oxley are justified in nerve-wracking to stop the illegal actions within the finances of a corporation by making heap responsible for their actions and the actions of those around us. The creative reporting methods that people use in ponzi schemes and recording of financial information needs to be highly monitored to prevent losses for stakeholders. Realistic solutions include mor e laws for the approach of the corporate world. Laws that protect individual employees like auditors and Certified Public Accountants, because as it stands now all liability falls to only a fewer people like the CFO or CEO, when in fact in that respect are instances when they too need protection. Small businesses that wish to go public should have similar laws designed for their size and not just an comprehensive law that might prevent the company from growth.ReferenceNogler, G., & Inwon, J. (2011, May/June). Sarbanes-Oxley Act Was the one-size-fits-all approach justified? Journal of Corporate Accounting & Finance (Wiley), 22(4), 65-76. http//dx.doi.org/10.1002/jcaf.20691