The Sarbanes-Oxley Act is a mandatory legislation which had came into force in 2002 with the changes in regulation of corporate governance and of financial practice. There are Periodic Statutory financial reports which are to include certification that the financial statements and related information fairly prestent the financial condition and the results in all material respects information on any fraud that involves employees who are involved with internal activities. There are some requirements that the organizations will not try to avoid by reincorporating in the activities or trasferring the activties outside of the United States. The certification of financial statements should be published and requires issuers of reports to inform the annual reports concerning the scope and adequancy of internal control structure and procedures. Accounting Professionals have benefited because they are very good at doing what they are best at and thats to be as honest as the can be in the accounting field. The accounting firm also must attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial reporting. There are penalties of fines up to 20 years imprison for altering, destroying, mutilating,concealing,falsifying records,cocuments or tangible objects with the intent to obstract impede or in fluence a legal investigation. In Section 802 it also mentions that there is a penalty of fine/imprisonment for up to 10 years on any accountant who knowingly and wilfully violates the requirements of maintenance of all audit or review papers for a period of 5 years.
The SOX has been a good Sorce for business an internal financing. Whe the SOX was being used many companies were aware that the internal control was becoming a success. Most of the penalty were for the non-compliance or for violations. The SOX is very good for the accounting professionals because this will hep them with their financial reports. The SOX...
Please join StudyMode to read the full document