Sarbanes- Oxley Act 2002
March 31, 2014
This paper will explain the Sarbanes-Oxley Act of 2002 regulation. The paper will also explain what actions are expected in each section to assure that correct information is being relayed to the public. It will also discuss the fines and other penalties that will come with no adhering to the regulations. It will also give an idea to the effects of the act in the future as it pertains to how the public is protected from fraudulent activity. Sarbanes-Oxley Act 2002
Regulation of financial practice and corporate governance saw major changes in 2002 when legislation came into force. This legislation was named for Senator Paul Sarbanes and Representative Michael Oxley. These men are the main architects for the changes and also set forth several deadlines for compliance also. There are eleven titles to the Sarbanes-Oxley Act. Sections 302, 401, 409, and 802 are considered the most important when it comes to compliance. Throughout this paper it will describe the main element of the regulatory environment which will protect the citizens from fraud by corporations. These sections also evaluate whether the Sarbanes-Oxley Act will be effective in avoiding future frauds.
Sarbanes-Oxley Act 2002 Section 302
In title III of the act section 302 is listed (Sarbanes-Oxley Act 2002, 2006) . In this section it explains the responsibilities of the corporation as it pertains to financial reports. Periodically these reports should include certifications that have been reviewed by the signing officer. The officer should make reports are free from any items that are not true statements. There should not be any items left out or any items that misleading. The conditions and results of all material should be seen in all financial statements and be fairly presented in the reports. Internal control is the responsibility of the signing...
References: American Institute of CPA’s. (2006-2014). Retrieved from http://www.aicpa.org/advocacy/issues/pages/section404bofsox.aspx
Sarbanes-Oxley act 2002. (2006). Retrieved from http://www.soxlaw.com/index.htmSarbanes Oxley 101. (2005-2014). Retrieved from http://www.sarbanes-oxley-101.com/SOX-906.htm
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