Assess the Effectiveness of SOX Legislation Research - 825 Words

Assess the Effectiveness of SOX Legislation Research (Essay Sample) Content: Students NameProfessors NameCourseDateAssess the Effectiveness of SOX LegislationQuestion 1According to Garber and Sox, the enactment of SOX comprises two important ethical components that have the ability to act as prevention to unethical organizational practices (1806). The first component implies that a code of ethicsshould be set up for senior financial officers in an association, while the second component entails that all the time outside lead auditors within a firm ought to be rotated. In the first component, it should have implications on social responsibility with regards to mandatory publication of ethics codes as indicated in the SOX legislation.The article Audit Committee Composition and Effectiveness by Malik suggests that the second component did not reach out sufficiently far and that there ought to be a necessity for the rotation of review firms rather than just lead auditors (67). This review rotation prerequisite was implemented to ensure that outsid e auditors are autonomous and impartial of the organizations that they are auditing and, as indicated by the article, the legislature should oppose industry weight with respect to these arrangements. In addition, it was implemented to ensure that they ought to conceivably be extended. In addition, according to SOX legislation, it has suggestions on social obligation with respect to required distribution of morals codes.Question 2As indicated by Sox, financial fraud and abuse are still being experienced despite the passage of SOX because there are still complexity on the accounting fraud such as that experienced at Enron which is typically hard for the average normal retail investor to find out (203). According to Selby, the Ivy League holding Wall Street Analyst did not exposed the Enron fraud, but the exposure was done by the journalist who utilized diary articles and open filings in their due diligence procedures (98). Regardless of entry of SOX, the statement of financial fraud r emains excessively basic occurrence, regularly affect the retirement of individuals as well as instructive investment resources. Engaging (SOX) first on the scene to reveal a fake organization can be extremely lucrative from a short merchant's viewpoint and can be rather gainful to a distrustful financial investor who is weighing the general market conclusion.Question 3Based on my research, one recommendation for enhancing SOX is to avoid conflicts of interest. As to my understanding, SOX has provided counseling services and this is the correct step for the goodcourse since Andersen was achieving more income from counseling as compared to that from administrations. However, some other conflict of interest may arise; for example, there is an issue with the recently made Public Company Accounting Oversight Board (PCAOB).According to Garber andSox, the board individuals are not designated by the President and the SEC does the contracting and terminating (1811). This perhaps abuses the regulation of detachment of forces. In any case, the PCAOB will be the government arm; at that point, it will be good if the president chose the individuals from the board.The second way of improving the SOX legislation is to take into consideration the five-year rotation of the auditors. As of now, SOX is in need of the audit rotation partners; however,they can still all be from a similar firm. Therefore, a superior method for rotation is to achieve the rotation for the entire firmQuestion 4Beyond the scope of SOX, the organization ought to have legitimate plans set up so as to diminish fraudulent exercises from happening. Allowing employees to be aware on the company policy is among the best method to prevent behaviors caused by fraudulent activities. ...

Student s Performance As Cause Effect Phenomen A...

Student’s Performance as Cause-Effect Phenomena: A Multilevel Approach Introduction: Education plays a vital role in the human and country development at all stages. There are key determinants that affect the education level which ultimately translate into human and country s development. Quality education ensures the achievement of knowledge and required skills that enable individuals to enhance the productivity and improve their living standard and access to basic needs. This increase in productivity further translate towards new sources of earning which also further enhances the economic growth of a country (Saxton, 2000). Student performance is a key component of quality education that result in better outputs in the long run. Student intellectual performance measurement has received substantial consideration in previous research literature, it is a challenging aspects of academic literature. Student performance are affected by many factors including social, mental, economic, environmental and personal factors. These factors strongly influence on the student inte llectual performance, but these factors vary from person to person and country to country. During the last decade in Pakistan, the enrollment at primary, secondary and higher level has been increased substantially. Literacy for all (LFA) is a project initiated by government of Pakistan in 2005 which encourage the overage people to engage in getting primary education. Similarly, some other

Discuss the Portrayal of Portia and Jessica in the...

In The Merchant of Venice Shakespeare used Portia and Jessica as his stereotypical characters through which he successfully conveyed greatness and challenged the perception of 17th century society. Shakespeare, by doing so, has accomplished them with what they lacked. Quotation serves to emphasise Shakespeares drama since the word `accomplished implies that it is Shakespeare who created the two characters to appear as mens equals and that otherwise this equality would not be attainable within the society of the contemporary time. At the beginning of the play, Portia appears to have no real identity despite all her greatness and worth whereas Jessica, being a Jew appeared as a character with low self-esteem and emerges as having†¦show more content†¦Shakespeares use of the word `curbd imply means of restraints that in this context could provide the notion that Portia is restrained to her own will and thereby completely `bound by her fathers will. With regards to Jessicas character, Shakespeare endeavoured to generate a slightly different sympathy. Jessica is known to be Shylocks daughter, her character is assumed to be that of low self-esteem and without potential greatness., thus, Jessica is regarded as inferior to other Christians due to her Jewish origins and religion. This is partly manifest through Shakespeares language and partly through plots development. Jews in this play are regarded as dehumanised beings as becomes apparent from Antonios speech that called Shylock a `dog. Jessica, being biologically bound to her father, is also regarded as inferior to Christians, maybe providing the reason why she eloped with a Christian man in the end. None the less, her low self-esteem is drawn by her acceptance to be Lorenzos torch-bearer. Shakespeare provided a negative imagery by Lorenzos speech. Torch-bearer insinuates the image of a slave and an owned individual which we assume Jessica becomes after her marriage ceremony. As opposed to Portias respectful and obedient manner Jessica is conveyed as a rebellious and disobedient character. Due to the fact that Jessica eloped from her father, quoting that Alack, what heinous sin is it in me to beShow MoreRelatedShylock as a Victim of Villain Essay2293 Words   |  10 PagesShylock as a Victim of Villain Throughout the play ‘The Merchant of Venice’ there are constant references to various characters and the way they relate to one another, however there is no character so diverse and so complex as Shylock’s character. Shakespeare tries to portray Shylock in a number of ways however I believe his main focus in the play, is on his villainous side. This may be portraying the time of Shakespeare where ethnic minorities likeRead MoreAnalysis Of Film Production Of The Merchant Of Venice1249 Words   |  5 PagesFilm Review Michael Radford s 2004 film production of The Merchant of Venice provides a well-executed and generally faithful rendition of Shakespeare s play. Radford s production especially succeeds in both its casting and set design that elevates the mood and drama contained in Shakespeare s text. In addition to the filming, particular attention was taken to following the original text, but some interesting in liberties in plot details were taken. Radford’s production serves as an exemplar

Australian Taxation Law Customs Duties

Question: Discuss about theAustralian Taxation Lawfor Customs Duties. Answer: Significance of Cases in the Development of Australian Tax Law In the ancient past, the Australian taxation system was based on the excise and customs duties. Gradually, the state governments in Australia introduced state income tax and then in early nineties, the Australian federal government introduced federal income tax. The coverage of types of transactions under income tax was limited in the early years of application of income tax. Further, the definition of income given under the taxation laws was also narrow and conflicting. Since the year 1915[1], the government of Australia has carried out developments at large scale in the area of income tax. The definition of income has undergone changes several times since the introduction of income tax regime. Before the year 1985, the capital gains tax was not introduced, which laid to conflicting issues in levying income tax on the commercial transactions. Since, the capital gains tax was not applicable; therefore, the taxation authorities had to make a rigorous exercise in deciding as to whether the profits earned on sale of land and properties are to be taxed as income or to be considered as capital receipt and hence no tax to be levied. Until the introduction of legal provisions on capital gains tax, the case laws pave the way for the taxation authorities in deciding as to which income is to be treated as profits chargeable to tax and which will be considered as capital receipt not assessable under income tax laws. Few of the prominent cases clarifying such issues are being discussed as under: Californian Copper Syndicate v Harris (1904) 5 TC 159 In the case of Californian Copper Syndicate v Harris (1904)[2] the issue of taxation of the profits on sales of land was taken up. The taxpayer company sold a piece of land acquired for mining and mineral extraction purpose in exchange of shares. The issue arose that whether the profit earned on such sale transaction should be taxed as income or be deemed as mere capital receipts and not to be taxed hence. At that time when this case was taken up, the capital gains tax was not in the legal system of Australian taxation. Therefore, if the transaction did not satisfy the conditions of the income, the profit was not taxable at all. The conflict as regard taxation of profits was mostly in the cases involving transactions of purchase and sale of land. In this case, the court observed that in order to conclude that the profit is taxable as income, it is essential to make sure that the land was used in business with the explicit or implicit intention to make profit. Thus, the existence of profit motive is critical to bring the profits earned on sale of land under the ambit of tax. Further, another principle was laid in this case which assists in determination of the fact that whether the taxpayer had profit motive or not. The determination of profit motive is to be looked in the light of various dimensions. The court put down out that no single factor could be fixed to determine the profit motive of the taxpayer. This case law provided direction to the taxation authorities to for determination of the profit motive of the taxpayer. Therefore, in this way, the case of Californian Copper Syndicate v Harri helped in administration of the income tax laws in Australia. This case law provided a solid foundation to the taxation authorities to finalize the cases involving conflicts at the very first stage without going through the time consuming litigation process. Whitfords Beach Pty Ltd v FCT 82 ATC 4031 This case also came in front of the honorable judges of the court before the promulgation of the capital gains tax by the Australian government. The issue involved in this case was also the same as attained in the case of Californian Copper Syndicate v Harri. However, the circumstances of the case were different this time. In fact, this time the major issue was whether the isolated transaction done by a taxpayer falls under the ambit of transactions in the ordinary course of business. After considering all the facts and evidences of the case, the court gave its judgment making it clear as crystal that the isolated transactions if carried with the profit motive would be liable to tax. The decision in this case further clarified the conflicting issues in the taxation of profits. The judgment of this case provided a foundation for tax ruling TR 92/3[3]. The Australian taxation authorities issued TR 92/3 to provide rules in regard to taxation of the profits earned on the isolated transactions. The ruling TR 92/3 provided proper explanation on the isolated transactions and the tax consequences of those transactions. Further, the ruling comprehensively clarified as to which type of transactions will fall under the isolated transactions category and which types of transactions will be covered under the tax net. Further, the landmark decisions in the case like Whitfords Beach Pty Ltd v FCT also pave the way of promulgation of the capital gains tax in Australia. Myer Emporium Pty Ltd v FCT 87 ATC 4363 The high court of Australia pronounced its decision in the case of Myer Emporium Pty Ltd v FCT in the year 1987[4]. In this case, the decision of the court further clarified the law regarding taxation of the profits derived from business activities. The court undertook comprehensive discussion on the nature of revenues and capital receipts. It was later on claimed that the decision in this case widened the scope of income which helped the income tax authorities in levying tax on the commercial transactions with more clarity. There was not any proper definition of the term income in the income tax assessment act 1936. The absence of proper definition of income laid many conflicts in regard to taxation of the profits earned from the isolated transactions. The main reason of conflict was difference in taxation of the capital and revenues receipts. The revenues receipts or profits were liable to tax while the money receipts of capital nature were not liable to tax until the promulgation of the capital gains tax. In the absence of proper definition of income it was quite contradictory to decide as to which receipts are of revenue nature and which are of capital nature. Further, the provisions of income tax assessment act 1997 were also not clear in regard to definition of income. There is a very casual definition of income given in section 6-5(1) of the income tax assessment act 1997. This section provides that the assessable income means the income in ordinary sense. There are no further clarifications and explanations on the term ordinary income. Thus, the clarification in regard to the term, income is not sufficient in the income tax assessment acts. Therefore, the case of Myer Emporium Pty Ltd v FCT assumes importance in the area of defining the term income neatly. Introduction of the Capital Gains Tax and Its Impact on the Landmark Cases The capital gains tax was introduced in Australia in the year 1985[5] with the primary of objectives bringing the profits on sale of capital assets like property under the tax net. Prior to the year 1985 when the capital gains tax was not introduced, the conflicts in taxation in regard to levy of tax on the profits earned on sale of capital assets were common. The capital receipts were not taxable prior to introduction of capital gains tax therefore the taxpayer were used to claim the sale of assets like land as capital receipts to escape from tax. The conflicts between the tax authorities and the taxpayers were observed on several grounds which gave rise to litigations. Thus, prior to introduction of the capital gains tax, the conflicts between the tax authorities and the tax payers were used to resolve through litigation process. There many cases such as Californian Copper Syndicate v Harris (1904) 5 TC 159, Whitfords Beach Pty Ltd v FCT 82 ATC 4031, and Myer Emporium Pty Ltd v FCT 87 ATC 4363, which have been referred since years to resolve the conflicts. These cases provide comprehensive explanations in regard to taxation of land and other capital assets. However, after introduction of the capital gains tax the application of these cases has been limited. The income tax assessment act 1997 provides a thorough coverage of the capital gains tax. The provisions of capital gains are contained in chapter-3 of income tax assessment act 1997[6]. This chapter covers definitions, explanations, and allied matters as regard capital gains tax in a great detail so that the likelihood of conflicts could be diminished. However, it should be noted that though th e application of case laws as discussed above is limited after introduction of capital gains tax, but still the principles laid down in these cases holds importance in laying the foundation of the law and carrying the objectives of law forward.