Sarbanes Oxley Act

The Sarbanes-Oxley Act, named after Senator Paul Sarbanes and Representative Michael G. Oxley, was signed into the U.S. law on July 30, 2002. The law was signed by President Bush to ordinate forth the necessary efforts to protect the investing public from officers of corporations and auditing firms who fraudulently misrepresent the pecuniary stability of the corporation (Fujitsu.com). In some other words, the Act was designed enforce the improvement on the dependableness and accuracy of corporate disclosures. The Sarbanes-Oxley Act was introduced due to the bankruptcies of Enron, Global Crossing, Adelphia, and WorldCom and the situation that they had hidden their true financial standings from creditors and sh atomic number 18holders until they were unable to meet their financial obligations which resulted in the exposure of significant losses. The Sarbanes-Oxley Act is arranged into xi titles. However, six major points will be discussed in this paper. 1.

particle 302--Corporate Responsibility for Financial Reports: this section requires that the principal executive officer, or the principal financial officer, or person performing similar functions, certify in each annual or quarterly report filed or submitted that: The signing officer has reviewed the report The report does non contain any veridical untrue statements or material omission or be considered misleading The financial statements and related education fairly present the financial condition and the results in wholly material respects The signing officers are responsible for interior(a) controls and suck evaluated these internal controls within the previous ninety days and cast reported on their findings a list of all deficiencies in the internal controls and information on any fraud that involves employees who are involved with internal activities Any significant changes in internal controls or related factors that could have a negative tint on the internal controls In this section, executive and financial... If you want to engender a full essay, order it on our website: Ordercustompaper.com

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