What is impact of Sarbanes-Oxley Act?
Section of the SOX Act of is a mandate that requires senior management to certify the accuracy of the reported financial statement. Section of the SOX Act of is a requirement that management and auditors establish internal controls and reporting methods on the adequacy of those controls.
Section has very costly implications for publicly traded companies as it is expensive to establish and maintain the required internal controls.
The first deals with destruction and falsification of records. The second strictly defines the retention period for storing records.
The third rule outlines the specific business records that companies need to store, which includes electronic communications. Besides the financial side of a business, such as the audits, accuracy and controls, the SOX Act of also outlines requirements for information technology departments regarding electronic records.
The standards outlined in the SOX Act of do not specify how a business should store its records, only that it's the IT department's responsibility to store them.Since its enactment in , the Sarbanes-Oxley Act (“SOX”) has been widely perceived to regulate only publicly held companies.
That perception is not, and has never been, correct. There are some provisions of SOX that expressly apply to . The Sarbanes-Oxley Act requires public companies to strengthen audit committees, perform internal controls tests, make directors and officers personally liable for accuracy of financial statements.
Why the Sarbanes-Oxley Act should not be repealed. | [Type the document subtitle] | | Introduction of Sarbanes Oxley On March 5th, , Fortune magazine released an article by Bethany McLean.
The theme of this article was that Enron’s stocks were overpriced.
Mar 10, · Widely deemed the most important piece of security legislation since formation of the Securities and Exchange Commission in , the landmark Sarbanes-Oxley Act of . Why the Sarbanes-Oxley Act should not be repealed. | [Type the document subtitle] | | Introduction of Sarbanes Oxley On March 5th, , Fortune magazine released an article by Bethany McLean.
The theme of this article was that Enron’s stocks were overpriced. The Sarbanes-Oxley Act of is a legislative response to a number of corporate scandals that sent shockwaves through the world financial markets. Trading SOX Semiconductor Index at Year.