The Sarbanes-Oxley Act of 2002

The Sarbanes–Oxley Act of 2002 (Pub.L. 107-204, 116 Stat. 745, enacted July 29, 2002), also known as the ‘Public Company Accounting Reform and Investor Protection Act’ (in the Senate) and ‘Corporate and Auditing Accountability and Responsibility Act’ (in the House) and more commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law that set new or enhanced standards for all U.S. public company boards, management and public accounting firms. It is named after sponsors U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH). As a result of SOX, top management must now individually certify the accuracy of financial information. In addition, penalties for fraudulent financial activity are much more severe. Also, SOX increased the independence of the outside auditors who review the accuracy of corporate financial statements, and increased the oversight role of boards of directors.[1]
The bill was enacted as a reaction to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of affected companies collapsed, shook public confidence in the nation’s securities markets.
The act contains 11 titles, or sections, ranging from additional corporate board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the law. Harvey Pitt, the 26th chairman of the SEC, led the SEC in the adoption of dozens of rules to implement the Sarbanes–Oxley Act. It created a new, quasi-public agency, the Public Company Accounting Oversight Board, or PCAOB, charged with overseeing, regulating, inspecting and disciplining accounting firms in their roles as auditors of public companies. The act also covers issues such as auditor independence, corporate governance, internal control assessment, and enhanced financial disclosure. The nonprofit arm of Financial Executives International (FEI), Financial Executives Research Foundation (FERF), completed extensive research studies to help support the foundations of the act.
The act was approved by the House by a vote of 423 in favor, 3 opposed, and 8 abstaining and by the Senate with a vote of 99 in favor, 1 abstaining. President George W. Bush signed it into law, stating it included “the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt. The era of low standards and false profits is over; no boardroom in America is above or beyond the law.”[2]
In response to the perception that stricter financial governance laws are needed, SOX-type laws have been subsequently enacted in Japan, Germany, France, Italy, Australia, India, South Africa, and Turkey.
Debate continues over the perceived benefits and costs of SOX. Opponents of the bill claim it has reduced America’s international competitive edge against foreign financial service providers, saying SOX has introduced an overly complex regulatory environment into U.S. financial markets.[3] Proponents of the measure say that SOX has been a “godsend” for improving the confidence of fund managers and other investors with regard to the veracity of corporate financial statements.[4]

Public Company Accounting Oversight Board (PCAOB)
Title I consists of nine sections and establishes the Public Company Accounting Oversight Board, to provide independent oversight of public accounting firms providing audit services (“auditors”). It also creates a central oversight board tasked with registering auditors, defining the specific processes and procedures for compliance audits, inspecting and policing conduct and quality control, and enforcing compliance with the specific mandates of SOX.
Auditor Independence
Title II consists of nine sections and establishes standards for external auditor independence, to limit conflicts of interest. It also addresses new auditor approval requirements, audit partner rotation, and auditor reporting requirements. It restricts auditing companies from providing non-audit services (e.g., consulting) for the same clients.
Corporate Responsibility
Title III consists of eight sections and mandates that senior executives take individual responsibility for the accuracy and completeness of corporate financial reports. It defines the interaction of external auditors and corporate audit committees, and specifies the responsibility of corporate officers for the accuracy and validity of corporate financial reports. It enumerates specific limits on the behaviors of corporate officers and describes specific forfeitures of benefits and civil penalties for non-compliance. For example, Section 302 requires that the company’s “principal officers” (typically the Chief Executive Officer and Chief Financial Officer) certify and approve the integrity of their company financial reports quarterly.[5]
Enhanced Financial Disclosures
Title IV consists of nine sections. It describes enhanced reporting requirements for financial transactions, including off-balance-sheet transactions, pro-forma figures and stock transactions of corporate officers. It requires internal controls for assuring the accuracy of financial reports and disclosures, and mandates both audits and reports on those controls. It also requires timely reporting of material changes in financial condition and specific enhanced reviews by the SEC or its agents of corporate reports.
Analyst Conflicts of Interest
Title V consists of only one section, which includes measures designed to help restore investor confidence in the reporting of securities analysts. It defines the codes of conduct for securities analysts and requires disclosure of knowable conflicts of interest.
Commission Resources and Authority
Title VI consists of four sections and defines practices to restore investor confidence in securities analysts. It also defines the SEC’s authority to censure or bar securities professionals from practice and defines conditions under which a person can be barred from practicing as a broker, advisor, or dealer.
Studies and Reports
Title VII consists of five sections and requires the Comptroller General and the SEC to perform various studies and report their findings. Studies and reports include the effects of consolidation of public accounting firms, the role of credit rating agencies in the operation of securities markets, securities violations and enforcement actions, and whether investment banks assisted Enron, Global Crossing and others to manipulate earnings and obfuscate true financial conditions.
Corporate and Criminal Fraud Accountability
Title VIII consists of seven sections and is also referred to as the “Corporate and Criminal Fraud Accountability Act of 2002”. It describes specific criminal penalties for manipulation, destruction or alteration of financial records or other interference with investigations, while providing certain protections for whistle-blowers.
White Collar Crime Penalty Enhancement
Title IX consists of six sections. This section is also called the “White Collar Crime Penalty Enhancement Act of 2002.” This section increases the criminal penalties associated with white-collar crimes and conspiracies. It recommends stronger sentencing guidelines and specifically adds failure to certify corporate financial reports as a criminal offense.
Corporate Tax Returns
Title X consists of one section. Section 1001 states that the Chief Executive Officer should sign the company tax return.
Corporate Fraud Accountability
Title XI consists of seven sections. Section 1101 recommends a name for this title as “Corporate Fraud Accountability Act of 2002”. It identifies corporate fraud and records tampering as criminal offenses and joins those offenses to specific penalties. It also revises sentencing guidelines and strengthens their penalties. This enables the SEC to resort to temporarily freezing transactions or payments that have been deemed “large” or “unusual”.

John Tyler

John Tyler (29 March 1790 – 18 January 1862) was the tenth President of the United States (1841–1845), after being the tenth Vice President of the United States (1841). A native of Virginia, Tyler served as a state legislator, governor, U.S. representative, and U.S. senator before being elected Vice President in 1840. He was the first to succeed to the office of President on the death of the incumbent, succeeding William Henry Harrison. Tyler’s opposition to nationalism and emphatic support of states’ rights endeared him to his fellow Virginians but alienated him from most of the political allies that brought him to power in Washington. His presidency was crippled by opposition from both parties. Near the end of his life, he supported the secession movement in the southern states, and was elected to the Congress of the Confederate States of America.
Tyler was born to an aristocratic Virginia family of English descent, and came to national prominence at a time of political upheaval. In the 1820s, the nation’s only political party, the Democratic-Republicans, split into factions, most of which did not share Tyler’s strict constructionist ideals. Though initially a Democrat, his opposition to Andrew Jackson and Martin Van Buren led him to alliance with the Whig Party; he was elected Vice President In 1840 on the Whig ticket. Upon the death of President William Henry Harrison on 4 April 1841, only a month after his inauguration, a short Constitutional crisis arose over the succession process. Tyler immediately moved into the White House, took the oath of office, and assumed full presidential powers, a precedent that would govern future successions and eventually be codified in the Twenty-fifth Amendment.
As President, Tyler opposed the Whig platform and vetoed several of their proposals. As a result, most of his cabinet resigned, and the Whigs, dubbing him His Accidency, expelled him from the party. While he faced a stalemate on domestic policy, he still had several foreign policy achievements, including the Webster–Ashburton Treaty with Britain and the Treaty of Wanghia with Qing China. Tyler dedicated his last two years in office to the annexation of Texas. He sought re-election to a full term, but he had alienated Whigs and the Democrats wouldn’t have him back. His efforts to form a new party came to nothing. However, in the last days of his term, Congress passed the resolution authorizing annexation, which was carried out by Tyler’s successor as President, James K. Polk.
Tyler essentially retired from electoral politics until the outbreak of the Civil War in 1861. He sided with the Confederate government, and won election to the Confederate House of Representatives shortly before his death. Although some have praised Tyler’s political resolve, his presidency is generally held in low esteem by historians; today he is considered an obscure president, with little presence in the American cultural memory.[1]

Abraham Lincoln Quotes

You cannot help the poor by destroying the rich.
You cannot strengthen the weak by weakening the strong.
You cannot bring about prosperity by discouraging thrift.
You cannot lift the wage earner up by pulling the wage payer down.
You cannot further the brotherhood of man by inciting class hatred.
You cannot build character and courage by taking away people’s initiative and independence.
You cannot help people permanently by doing for them, what they could and should do for themselves.
~Abraham Lincoln

Some day I shall be President.

~Abraham Lincoln

Towering genius disdains a beaten path.

~Abraham Lincoln

 

Let reverence of the law . . . become the political religion of the nation.
−Abraham Lincoln

W. Eugene Smith

W. Eugene Smith
From Wikipedia, the free encyclopedia
William Eugene Smith (December 30, 1918, Wichita, Kansas – October 15, 1978, Tucson, Arizona) was an American photojournalist known for his refusal to compromise professional standards and his brutally vivid World War II photographs.

Contents
1 Life and work
2 Collections and notable photographs
3 Notes
4 References
5 External links
[edit]Life and work

Smith graduated from Wichita North High School in 1936. He began his career by taking pictures for two local newspapers, The Wichita Eagle (morning circulation) and the Beacon (evening circulation). He moved to New York City and began work for Newsweek and became known for his incessant perfectionism and thorny personality. Smith was fired from Newsweek for refusing to use medium format cameras and joined Life Magazine in 1939. He soon resigned from Life, too. In 1942 he was wounded while photographing battle conditions in the Pacific theater of World War II.

As a correspondent for Ziff-Davis Publishing and then Life again, Smith entered World War II on the front lines of the island-hopping American offensive against Japan, photographing U.S. Marines and Japanese prisoners of war at Saipan, Guam, Iwo Jima, and Okinawa. On Okinawa, Smith was hit by mortar fire. After recovering, he continued at Life and perfected the photo essay from 1947 to 1954.

In 1950, he was sent to the United Kingdom to cover the General Election, in which the Labour Party, under Clement Attlee, was narrowly victorious. Life had taken an editorial stance against the Labour government. In the end, a limited number of Smith’s photographs of working-class Britain were published, including three shots of the South Wales valleys. In a documentary made by BBC Wales, Professor Dai Smith traced a miner who described how he and two colleagues had met Smith on their way home from work at the pit and had been instructed on how to pose for one of the photos[1] published in Life.

Smith severed his ties with Life over the way in which the magazine used his photographs of Albert Schweitzer. Upon leaving Life, Smith joined the Magnum photo agency in 1955. There he started his project to document Pittsburgh. This project was supposed to take him three weeks, but spanned three years and tens of thousands of negatives. It was too large ever to be shown, although a series of book-length photo essays were eventually produced.

From 1957 to 1965 he took photographs and made recordings of jazz musicians at a Manhattan loft shared by David X. Young, Dick Cary and Hall Overton.[2]

In January 1972, Smith was attacked by Chisso employees near Tokyo, in an attempt to stop him from further publicizing the Minamata disease to the world.[3] Although Smith survived the attack, his sight in one eye deteriorated. Smith and his Japanese wife lived in the city of Minamata from 1971 to 1973 and took many photos as part of a photo essay detailing the effects of Minamata disease, which was caused by a Chisso factory discharging heavy metals into water sources around Minamata. One of his most famous works, Tomoko Uemura in Her Bath, taken in December 1971 and published a few months after the 1972 attack, drew worldwide attention to the effects of Minamata disease.[4]

Complications from his longterm consumption of drugs[citation needed], notably amphetamines (taken to enable his workaholic tendencies), and alcohol led to a massive stroke, from which Smith died in 1978. He is buried in Crum Elbow Cemetery, Pleasant Valley, New York.

Smith was perhaps the originator and arguably the master of the photo-essay. In addition to Pittsburgh, these works include Nurse Midwife, Minamata, Country Doctor, and Albert Schweitzer – A Man of Mercy.

Today, Smith’s legacy lives on through the W. Eugene Smith Memorial Fund to promote “humanistic photography.”[5] Since 1980, the fund has awarded photographers for exceptional accomplishments in the field.

[edit]Collections and notable photographs

(1944) photograph[6] in which a wounded infant is found by an American soldier on Saipan
(1945) photograph[7] in which Marines blow up a Japanese cave on Iwo Jima, published on the cover of Life Magazine, April 9, 1945
“The Walk to Paradise Garden”[8] (1946) single photo of his two children walking hand in hand towards a clearing in woods. It was the closing image in the groundbreaking 1955 MOMA exhibition, “The Family of Man,”[9] organized by Edward Steichen with 503 photographs, by 273 photographers from 68 countries, that he recognized as picturing “the essential oneness of mankind throughout the world [showing] the gamut of life from birth to death.”
“Country Doctor”[10] (1948) photo essay on Dr. Ernest Ceriani in the small Colorado town of Kremmling. Credited as the first “photo story” of the modern photojournalism age.
Spanish Village[11] (1950) photo essay on the small Spanish town of Deleitosa.
“Nurse Midwife” (1951) photo essay on midwife Maude E. Callen in South Carolina.
A Man of Mercy[12] (1954) photo essay on Dr. Albert Schweitzer and his humanitarian work in French Equatorial Africa.
“Pittsburgh”[13] (1955–1958) 3 year-long project on the city, hired initially by photo editor Stefan Lorant for a three-week assignment.
Haiti 1958–1959 photo essay on a psychiatric institute in Haiti.
“Tomoko Uemura in Her Bath” (1971) the centerpiece photograph in Minamata, a long-term photo essay by Smith on the effects of mercury poisoning in the fishing village of Minamata, Kumamoto Prefecture, Japan (see Minamata disease). The photograph depicts a mother cradling her severely deformed, naked daughter in a traditional Japanese bathing chamber. This has been withdrawn from circulation in accordance with the parents’ wishes.[14] The photograph was the centerpiece of a Minamata disease exhibition held in Tokyo, Japan, in 1974.[15]
[edit]Notes

^ Masters of Photography: W. Eugene Smith
^ Ratliff, Ben (March 10, 2005). “Tape Machine as a Fly on the Wall of Jazz”. The New York Times. Retrieved April 9, 2010.
^ Smith, pp94-95
^ In 1997, the photo Tomoko Uemura in Her Bath was officially withdrawn from circulation at the request of Tomoko’s family, and so it does not appear in recent anthologies of W.E Smith’s works. [1]
^ Eugene Smith Fund | Overview
^ W EUGENE SMITH vintage photograph soldier with baby Alder Gallery Fine Art and Eugene Glass School ‘s Glass Galleries are proud to present original works in glass oil painting…
^ Masters of Photography: W. Eugene Smith
^ Masters of Photography: W. Eugene Smith
^ Luxembourg Tourist Office in London – Clervaux
^ Masters of Photography: W. Eugene Smith
^ Masters of Photography: W. Eugene Smith
^ Masters of Photography: W. Eugene Smith
^ Masters of Photography: W. Eugene Smith
^ Withdrawal: Sam Stephenson, W. Eugene Smith 55 (London: Phaidon, 2001), 14.
^ Jim Hughes (2000). “Tomoko Uemura, R.I.P.”. Retrieved 2007-11-12.
[edit]References

Steichen, Edward. The Family of Man. New York: The Museum of Modern Art, 1955.
Smith, W. Eugene. W. Eugene Smith: An Aperture Monograph afterword by Lincoln Kirstein. New York: Aperture, 1969
Smith, W. Eugene and Lincoln Kirsten. W. Eugene Smith: His Photographs and Notes. New York: Aperture, 1973.
Smith, W. Eugene. Let Truth be the Prejudice: W. Eugene Smith, His Life and Photographs. New York: Aperture, 1985.

45 Communist Goals

On Jan. 10, 1963, Congressman Albert S. Herlong Jr. of Florida read a list of 45 Communist goals into the Congressional Record. The list was derived from researcher Cleon Skousen’s book “The Naked Communist.” These principles are well worth revisiting today in order to gain insights into the thinking and strategies of much of our so-called liberal elite:

1. U.S. should accept coexistence as the only alternative to atomic war.

2. U.S. should be willing to capitulate in preference to engaging in atomic war. [Note: These encapsulate the Kennan Doctrine, which advocated for the “containment” of communism. Establishment figures supporting the amoral containment policy at least implicitly worked with the communists in scaring the wits out of the American people concerning atomic war. President Ronald Reagan undid the doctrine when he took an aggressive stand against the Evil Empire by backing freedom fighters from around the world who were struggling against the left-wing communist jackboot. As a result, the Soviet Union and its satellites imploded, a considerable and unexpected setback to the international communist edifice.]

3. Develop the illusion that total disarmament by the U.S. would be a demonstration of “moral strength.” [Note: The nuclear freeze advocates supported a freeze on American nuclear development only. Rarely were Soviet nukes or those of other nations mentioned in their self-righteous tirades. The same advocates now call for reducing American military might, claiming that there is something immoral about America preserving its military pre-eminence in the world.]

4. Permit free trade between all nations regardless of Communist affiliation and regardless of whether or not items could be used for war. [Note: Today, there are calls to end the embargo on the slave island of Cuba, there were complaints about the embargo against Iraq, and the U.S., not Saddam Hussein, was blamed for the suffering of the Iraqi people. Would they have advocated for free trade with Hitler and his National Socialist regime?]

5. Extend long-term loans to Russia and Soviet satellites.

6. Provide American aid to all nations regardless of Communist domination. [Note: Such aid and trade over decades contributed greatly to the left-wing communist liquidation of over 100 million people worldwide, according to the well-documented “Black Book of Communism.” This aid and trade marks a shameful chapter in American history. Without the aid and trade, the left-wing international communist behemoth would have imploded on its own rot a lot sooner and umpteen millions would have been saved from poverty, misery, starvation and death.]

7. Grant recognition of Red China and admission of Red China to the U.N. [Note: Not only did President Jimmy Carter fulfill this goal but he also betrayed America’s allies in Nicaragua, El Salvador, Iran, Afghanistan, Angola and elsewhere.]

8. Set up East and West Germany as separate states in spite of Khrushchev’s promise in 1955 to settle the Germany question by free elections under supervision of the U.N.

9. Prolong the conferences to ban atomic tests because the U.S. has agreed to suspend tests as long as negotiations are in progress.

10. Allow all Soviet satellites individual representation in the U.N.

11. Promote the U.N. as the only hope for mankind. If its charter is rewritten, demand that it be set up as a one-world government with its own independent armed forces. [Note: There are still American intellectuals, and elected members of Congress, who dream of an eventual one world government and who view the U.N., founded by communists such as Alger Hiss, the first Secretary-General, as the instrument to bring this about. World government was also the dream of Adolf Hitler and J.V. Stalin. World government was the dream of Osama bin Laden and the 9/11 hijackers.]

12. Resist any attempt to outlaw the Communist Party. [Note: While the idea of banning any political party runs contrary to notions of American freedom and liberty, notions that are the exact opposite of those held by the left-wing communists themselves, nevertheless these goals sought to undermine the constitutional obligation of Congress to investigate subversion. The weakening of our government’s ability to conduct such investigations led to the attack of 9/11.]

13. Do away with loyalty oaths. [Note: It is entirely proper and appropriate for our government to expect employees, paid by the American taxpayer, to take an oath of loyalty.]

14. Continue giving Russia access to the U.S. Patent Office.

15. Capture one or both of the political parties in the U.S. [Note: In his book, “Reagan’s War,” Peter Schweizer demonstrates the astonishing degree to which communists and communist sympathizers have penetrated the Democratic Party. In his book, Schweizer writes about the presidential election of 1979.]

16. Use technical decisions of the courts to weaken basic American institutions, by claiming their activities violate civil rights. [Note: This strategy goes back to the founding of the American Civil Liberties Union by Fabian Socialists Roger Baldwin and John Dewey and Communists William Z. Foster and Elizabeth Gurley Flynn among others.]

17. Get control of the schools. Use them as transmission belts for Socialism and current Communist propaganda. Soften the curriculum. Get control of teachers associations. Put the party line in textbooks.

18. Gain control of all student newspapers.

19. Use student riots to foment public protests against programs or organizations that are under Communist attack. [Note:The success of these goals, from a communist perspective, is obvious. Is there any doubt this is so?]

20. Infiltrate the press. Get control of book review assignments, editorial writing, policy-making positions.

21. Gain control of key positions in radio, TV and motion pictures.

22. Continue discrediting American culture by degrading all form of artistic expression. An American Communist cell was told to “eliminate all good sculpture from parks and buildings,” substituting shapeless, awkward and meaningless forms.

23. Control art critics and directors of art museums. ” Our plan is to promote ugliness, repulsive, meaningless art.”

24. Eliminate all laws governing obscenity by calling them “censorship” and a violation of free speech and free press.

25. Break down cultural standards of morality by promoting pornography and obscenity in books, magazines, motion pictures, radio and TV. [Note: This is the Gramscian agenda of the “long march through the institutions” spelled out explicitly: gradual takeover of the “means of communication” and then using those vehicles to debauch the culture and weaken the will of the individual to resist.]

26. Present homosexuality, degeneracy and promiscuity as “normal, natural and healthy.” [Note: Today those few who still have the courage to advocate public morality are denounced and viciously attacked. Most Americans are entirely unwitting regarding the motives behind this agenda.]

27. Infiltrate the churches and replace revealed religion with “social” religion. Discredit the Bible and emphasize the need for intellectual maturity, which does not need a “religious crutch.” [Note: This has been largely accomplished through the communist infiltration of the National Council of Churches, Conservative and Reform Judaism, and the Catholic seminaries.]

28. Eliminate prayer or any phase of religious expression in the schools on the grounds that it violates the principle of “separation of church and state”

29. Discredit the American Constitution by calling it inadequate, old fashioned, out of step with modern needs, a hindrance to cooperation between nations on a worldwide basis.

30. Discredit the American founding fathers. Present them as selfish aristocrats who had no concern for the “common man.”

31. Belittle all forms of American culture and discourage the teaching of American history on the ground that it was only a minor part of “the big picture.” Give more emphasis to Russian history since the Communists took over. [Note: Obliterating the American past, with its antecedents in principles of freedom, liberty and private ownership is a major goal of the communists then and now.]

32. Support any socialist movement to give centralized control over any part of the culture – education, social agencies, welfare programs, mental health clinics, etc.

33. Eliminate all laws or procedures which interfere with the operation of the Communist apparatus.

34. Eliminate the House Committee on Un-American Activities.

35. Discredit and eventually dismantle the FBI.

36. Infiltrate and gain control of more unions.

37. Infiltrate and gain control of big business.

38. Transfer some of the powers of arrest from the police to social agencies. Treat all behavioral problems as psychiatric disorders which no one but psychiatrists can understand or treat. [Note: The Soviets used to send “social misfits” and those deemed politically incorrect to massive mental institutions called gulags. The Red Chinese call them lao gai. Hitler called them concentration camps.]

39. Dominate the psychiatric profession and use mental health laws as a means of gaining coercive control over those who oppose communist goals. [Note: Psychiatry remains a bulwark of the communist agenda of fostering self-criticism and docility.]

40. Discredit the family as an institution. Encourage promiscuity and easy divorce. [Note: Done! The sovereign family is the single most powerful obstacle to authoritarian control.]

41. Emphasize the need to raise children away from the negative influence of parents. Attribute prejudices, mental blocks and retarding of children to suppressive influence of parents. [Note: Outcome-based education, values clarification or whatever they’re calling it this year.]

42. Create the impression that violence and insurrection are legitimate aspects of the American tradition; that students and special interest groups should rise up and make a “united force” to solve economic, political or social problems. [Note: This describes the dialectical fostering of group consciousness and conflict, which furthers the interests of authoritarianism.]

43. Overthrow all colonial governments before native populations are ready for self-government.

44. Internationalize the Panama Canal.

45. Repeal the Connally Reservation so the U.S. cannot prevent the World Court from seizing jurisdiction over domestic problems. Give the World Court jurisdiction over domestic problems. Give the World Court jurisdiction over nations and individuals alike.