▪CEOs and CFOs are held responsible for their companies' financial reports
▪Executive officers and directors may not solicit or accept loans from their companies
▪Insider trades are reported more quickly
▪Insider trades are prohibited during pension-fund blackout periods
▪Mandatory disclosure of CEO and CFO compensation and profits
▪Mandatory internal audits and review and certification of those audits by outside auditors
▪Criminal and civil penalties for securities violations
▪Longer jail sentences and larger fines for executives who intentionally misstate financial statements
I am of the opinion the Sarbanes-Oxley Act was a necessary piece of legislation to rebuild public trust in the corporate community in the wake of corporate and accounting scandals. Enron, Tyco, WorldCom, ImClone, and Arthur Andersen scandals rocked investor confidence and damaged the reputation of companies large and small. A strong central focus of the Sarbanes-Oxley Act is to enhance the integrity of the audit process and the reliability of audit reports on issuers' financial statements. Some CEOs and CFOs complain they're burdened with huge implementation costs as armies of nitpicky auditors check every... [continues]
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