stevenwang78: What is Sarbanes-Oxley Act?

Sarbanes-Oxley Act 2002 is a United States federal law, in response to the latest major firms, and accounting scandals, including those adopted for the Enron, Tyco International and WorldCom (now MCI). These scandals have led to a decrease of public confidence in the accounting and reporting practices. Named after sponsors Senator Paul Sarbanes (D-MD.) and Representative Michael g. Oxley was (R-Oh), the law approved by the plenary meeting, by a vote of 423-3 and by the Senate 99-0. Legislation is vast and new or enhanced standards for all U.S. public boards, management and public accounting firms. The first and most important part of the law is a new semi-government agency, Public Company Accounting Oversight Board, responsible for supervising and disciplining accounting firms in their role as auditors of public companies. Some of the key provisions of Sarbanes-Oxley Act are:

--Certification of financial statements of the Chief Executive Officer and Chief financial officers

--Independent auditor, including the complete ban on certain types of work for audit clients and pre-certification by the company's Audit Committee of all other activities of non-audit

--A requirement that companies listed on stock exchanges have fully independent audit committees to monitor the relationship between the company and the auditor

--Far longer maximum terms of imprisonment and large fines for company executives who, knowingly and willfully financial reports, misstate, even if the maximum term is largely irrelevant, since judges generally follows the Federal finally guidelines when determining the actual phrases

--The employee protection which this corporate fraud whistleblowers that complaint with OSHA within 90 days, in order to win back and recycling, pay benefits, compensatory damages, abatement equipment orders, and reasonable attorneys ' fees and costs.

stevenwang78

Monday, February 14, 2011

What is Sarbanes-Oxley Act?

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