Sarbanes Oxley Act Compliance

The Sarbanes-Oxley Act is a serious and conscious effort to impose strict laws that are aimed at making corporations declare their financial situations. The profitability disclosures have to show a high degree of diligence and vigilance. The Sarbanes Oxley Act (SOX) was legislated in the backdrop of colossal corporate accounting failures. SOX seeks to bring in a renewed and more comprehensive set of requirements from all U.S. public company boards, management and public accounting firms to ensure greater accountability and to protect shareholders interests.

What is Accounting Fraud and How to Prevent Financial Statement Fraud

An understanding of what is accounting fraud and how to prevent financial statement fraud is an important lesson for managements across the world, in any kind of business. In the simplest terms, accounting fraud is the practice of manipulating accounting records so that the actual financial condition is hid from the investors, the public or the other stakeholders and a false picture, which shows the company to be in a falsely healthy condition, is presented in the books. more...


What is SOX Compliance?

The Sarbanes Oxley Act (SOX in common parlance) was passed by the American Congress in 2002, following a spate of high-profile corporate accounting frauds. The aim of this legislation, passed by the efforts of congressmen Paul Sarbanes and Michael Oxley, was to protect shareholders and the general public from the effects of these malpractices and make corporate financial practices more transparent. more...


What are the requirements for SOX compliance?

SOX was enacted purely for the purpose of enforcing greater accountability into the financial reporting systems of publicly traded companies. Its aim has been to set up procedures and controls for implementing its requirements, which is mandatory for publicly traded companies or companies that are about to launch their initial public offer (IPO). more...


Sarbanes-Oxley (SOX) Audit Requirements

An audit is a means to check that the systems are performing to set standards of quality. SOX makes an audit a mandatory tool for ensuring this. Accordingly, it has set the following SOX audit requirements. more...


Understanding the Costs and Benefits of Sarbanes-Oxley

The debate about the costs and benefits of Sarbanes Oxley is quite hot and emotive. The main argument of the opponents of the law is that they are being asked to implement very stringent procedures for no fault of theirs and for the sins of the big league, which is something that the government should have taken steps to prevent. Their grouse is all the more pronounced against Sec. 404, which squarely puts the blame for noncompliance on senior management, such as the CEO and the CFO and metes out extremely harsh punishment for them. more...


How Sarbanes-Oxley Affects Outsourcing?

Outsourcing, as we all know, is handing over part or a full portion of a work to an external source that has the capability, experience and expertise to carry out the work in accordance with the set requirements. Till the passage of the Sarbanes Oxley Act, little attention was paid to the actual process the company or individual to whom the work was outsourced - the supplier -used for carrying out the work, so long as the final product met the requirements. more...


Sarbanes Oxley Act Section 404

The essential goal of SOX, which the Securities Exchange Commission (SEC) considers as the most far-reaching legislation since its creation in 1934; is bringing about greater transparency and accountability into the way corporate boards function. Internal controls are the core tool through which SOX seeks to enforce its primary purpose. In Sarbanes Oxley Act Sec. 404, there is explicit and clear instruction on how managements need to assess the effectiveness of the internal controls that are in place for financial reporting. more...


How does Sarbanes-Oxley affect the accounting profession?

While the SOX Act is primarily aimed at making managements more accountable in their financial management practices, because of which the managements have had to make major changes into their financial reporting practices; another profession that has been impacted in a major way by the passage of the Sarbanes Oxley Act is the accounting profession. This is because of the fact that while management has to show greater transparency; it is the professionals in the accounting profession who have to actually carry out these changes and present them to the concerned authorities. This requires them to implement a number of major changes into their accounting and reporting practices. more...


The Importance of Sarbanes Oxley to Investors

One of the major areas of impact of Sarbanes Oxley is investors. The importance of Sarbanes Oxley to investors can be gauged from the fact that investor confidence, which had fallen to abysmal depths following the outbreak of the financial scandals, has bounced back impressively in the years after the passage of this historic piece of legislation. Like all other laws, the Sarbanes Oxley Act, too, did take its time to get rooted in the minds and practices of the concerned people. Many analysts came to hasty conclusions in the interim of this period, diluting the perception of the importance of Sarbanes Oxley to investors. more...


Effect of SOX Compliance on Small Companies

SOX compliance regulations are necessary for public companies or those that plan to go public in a year. Since most small companies are not public; SOX regulations apply to those that intend to do so in a year. This is the basic expectation that SOX has for small companies that want to go public in a year's time. Such companies have to show SOX compliance through a series of steps. These are the two important ones among them more...

Copyright © 2017 GlobalCompliancePanel. All rights reserved. Netzealous