Case 5.6.4 Per Section 302 (A)
Case 5.6
4.) Per Section 302(a)(5)(B) and 302(a)(6) of SARBOX, “ the signing officers have disclosed to the issuer’s auditors and the audit committee of the board of directors (or persons fulfilling the equivalent function) -----any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal controls; and the signing officers have indicated in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Per Section 305(5) of SARBOX, “In any action or proceeding brought or instituted by the Commission under any provision of the securities laws, the Commission may seek, and any Federal court may grant, any equitable relief that may be appropriate or necessary for the benefit of investors.’’ …show more content…
Referring to Section 302 of SARBOX, the top management groups that sign and disclose the financial statements; like those of Waste Management. Are required to disclose any fraud “that involves management or other employees who have a significant role in the issuer’s internal controls”. While there exists the possibility that management would not disclose incriminating fraud information involving them. The disclosure is still required and them signing the disclosure can put a great deal of legal liability against them. Then if management were to be caught committing fraud, and had not mentioned committing fraud in the disclosure. Management can face heavy legal penalties against
4.) Per Section 302(a)(5)(B) and 302(a)(6) of SARBOX, “ the signing officers have disclosed to the issuer’s auditors and the audit committee of the board of directors (or persons fulfilling the equivalent function) -----any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal controls; and the signing officers have indicated in the report whether or not there were significant changes in internal controls or other factors that could significantly affect internal controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Per Section 305(5) of SARBOX, “In any action or proceeding brought or instituted by the Commission under any provision of the securities laws, the Commission may seek, and any Federal court may grant, any equitable relief that may be appropriate or necessary for the benefit of investors.’’ …show more content…
Referring to Section 302 of SARBOX, the top management groups that sign and disclose the financial statements; like those of Waste Management. Are required to disclose any fraud “that involves management or other employees who have a significant role in the issuer’s internal controls”. While there exists the possibility that management would not disclose incriminating fraud information involving them. The disclosure is still required and them signing the disclosure can put a great deal of legal liability against them. Then if management were to be caught committing fraud, and had not mentioned committing fraud in the disclosure. Management can face heavy legal penalties against