Sarbanes Oxley Act Analysis
Sarbanes –Oxley act of 2002 Sarbanes Oxley act is passed by the US government in 2002 to protect the investors from the fraudulent activities performed by the corporations. Sarbanes- Oxley act is also known as SOX act which provides strict norms for corporations for disclosing the financial details to protect the accounting fraud. The SOX act which enacted because of the scandals which occur on the early 2000 which are Enron, Tycon and WorldCom. Sarbanes-Oxley act which named after Senator paul Sarbanes and representative Micheal Oxley who were the main architects of this act. The act which is titled into eleven titles and also it is divided into sections and the most important sections are section 302, 401, 404, 409, 802, and 906
Major Elements …show more content…
Section 401 This section is titled under the title 4 of the act and this section pertains to disclosures in periodic reports. Summary of this section is that the issuers of the financial statement shall provide accurate information and does not do any fraud activity. And also in the financial statement they have to provide the off balance sheet liabilities of the corporation. Also the commission also wanted to know whether the generally accepted accounting principles or other regulations which are employed by the issuers.
Section 404 This section is listed under the title 4 and pertains to management assessment of internal controls. In this section issuers are required to publish the internal control structure and financial reporting in their annual report. The registered accounting firm has to attest the internal control structures that it employed in the financial
Major Elements …show more content…
Section 401 This section is titled under the title 4 of the act and this section pertains to disclosures in periodic reports. Summary of this section is that the issuers of the financial statement shall provide accurate information and does not do any fraud activity. And also in the financial statement they have to provide the off balance sheet liabilities of the corporation. Also the commission also wanted to know whether the generally accepted accounting principles or other regulations which are employed by the issuers.
Section 404 This section is listed under the title 4 and pertains to management assessment of internal controls. In this section issuers are required to publish the internal control structure and financial reporting in their annual report. The registered accounting firm has to attest the internal control structures that it employed in the financial