Explain The Sarbanes-Oxley Act 2002
Sarbanes- Oxley Act 2002
Sharmin DanielsACC/561
March 31, 2014
Lisa Henderson
Abstract
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 …show more content…
This section refers to the ‘Management assessment of internal controls’ (Sarbanes-Oxley Act 2002, 2006). In this section it explains that issuers must include information in their yearly report in reference to the extent of activity and quality of the internal control structure and procedures for reporting their financials. All reports must show how effective the procedure and internal controls are. According to Sarbanes-Oxley Act 2002 (2006) “The registered accounting firm shall, in the same report, attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial
Sharmin DanielsACC/561
March 31, 2014
Lisa Henderson
Abstract
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 …show more content…
This section refers to the ‘Management assessment of internal controls’ (Sarbanes-Oxley Act 2002, 2006). In this section it explains that issuers must include information in their yearly report in reference to the extent of activity and quality of the internal control structure and procedures for reporting their financials. All reports must show how effective the procedure and internal controls are. According to Sarbanes-Oxley Act 2002 (2006) “The registered accounting firm shall, in the same report, attest to and report on the assessment on the effectiveness of the internal control structure and procedures for financial