The Sarbanes-Oxley Act of 2002 could be a u. s. federal law passed in response to the recent major company and accounting scandals as well as those at Enron, Tyco International, and World com (now MCI). These scandals resulted during a decline of trust in accounting and reportage practices. Named when sponsors legislator Paul Sarbanes (D-Md.) and Representative archangel G. Oxley (R-Oh.), the Act was approved by the House by a vote of 423-3 and by the Senate 99-0. The legislation is wide-ranging and establishes new or increased standards for all U.S. public company Boards, Management, and public accounting companies. the primary and most significant a part of the Act establishes a brand new quasi-public agency, the general public Company Accounting Oversight Board, that is charged with overseeing and disciplining accounting companies in their roles as auditors of public firms. a number of the key provisions of the Sarbanes-Oxley Act's include:
1. Certification monetary|of monetary|of economic} reports by chief govt officers and chief financial officers
2. Auditor independence, as well as outright bans on sure kinds of work for audit shoppers and pre-certification by the company's Audit Committee of all alternative non-audit work
3. A demand that firms listed on stock exchanges have totally freelance audit committees that manage the link between the corporate and its auditor
4. Significantly longer most jail sentences and bigger fines for company executives United Nations agency wittingly and wil fully say money statements, though most sentences area unit mostly orthogonal as a result of judges typically follow the Federal Sentencing pointers in setting actual sentences
5. Employee protections permitting those company fraud whistleblowers United Nations agency file complaints with agency inside ninety days, to win reinstatement, back pay and advantages, indemnity, abatement orders, and cheap professional person fees and prices.
1. Certification monetary|of monetary|of economic} reports by chief govt officers and chief financial officers
2. Auditor independence, as well as outright bans on sure kinds of work for audit shoppers and pre-certification by the company's Audit Committee of all alternative non-audit work
3. A demand that firms listed on stock exchanges have totally freelance audit committees that manage the link between the corporate and its auditor
4. Significantly longer most jail sentences and bigger fines for company executives United Nations agency wittingly and wil fully say money statements, though most sentences area unit mostly orthogonal as a result of judges typically follow the Federal Sentencing pointers in setting actual sentences
5. Employee protections permitting those company fraud whistleblowers United Nations agency file complaints with agency inside ninety days, to win reinstatement, back pay and advantages, indemnity, abatement orders, and cheap professional person fees and prices.
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