Importance of the Sarbanes

companies. Securities and Exchange Commission (SEC) and sells stock or similar securities. There are only two provisions of the Act that apply to non profit companies: prohibition on document destruction and whistleblower protection. Certain provisions also apply to accounting firms that work with or audit public companies.

After the Sarbanes Oxley Act took effect, public companies were required to meet certain conditions or face penalties. For example, the Act requires public companies to create an audit committee. The audit committee is part of the board of directors. It must include at least one accountant or someone who is "financially literate." The Act also requires public companies to hire outside firms to perform financial audits on an annual basis. No company may use the same firm Oakley Outlet Online for more than five years. Each company's chief executive Oakley Sunglasses Outlet Clearance Sale officer (CEO) or chief financial officer (CFO) is required to certify that the company's financial data are accurate; the CEO or CFO face criminal penalties if they lie. The Act also makes it a crime to destroy or Oakley Store conceal any document during a government investigation. Finally, the Act created the Public Company Accounting Oversight Board (PCAOB), which enforces the Sarbanes Oxley Act over public companies.

After the Sarbanes Oxley Act was passed in 2002, public companies were given a limited amount of time to comply with its provisions. Public companies initially had only two years to create a system of internal Oakley Store controls that complied with all the requirements of the Act. Extensions were granted to certain companies that allowed them to complete their compliance by 2005. Once public companies are in compliance with the Act, they are expected to maintain their compliance, in their internal controls, their yearly financial work and internal and external audits.

Penalties for failing to comply Oakley Sunglasses Outlet with the Sarbanes Oxley Act vary depending on which rule is violated. Section 807 further specifies a prison sentence of up to 25 years for anyone who commits securities fraud.

Importance of an Internal Control Audit

Importance of an Internal Control Audit. . section 302 of SOX requires management to assess their internal controls and report any material.

What Are the Main Features of the Sarbanes Oxley Act?

What Are the Main Features of the Sarbanes Oxley Act?. . Importance of Corporate Governance in a Nonprofit Organization. Overview of the Sarbanes Oxley.