Specifically sections 404 & 302, what is the impact on company’s?
You can look it up on wikipedia and find out a lot of info on it, probably including the entire act.
The crux of the whole Act is to make the top dogs, the CEO, CFO, etc responsible for the financial disclosures that are required under SEC rules. Basically, now the CEO has to sign off saying he agrees with the numbers before they go public. And at every level, companies are requiring managers to sign off on reports, so no one will be able to say, I didn’t know about that like the Enron guys tried to do.
November 13th, 2009 at 12:46 pm
Public company accounting reform and investors protection act. It is an act to protect employees investments,and to avoid another Enron scandel.
References :
Wikipedia
November 13th, 2009 at 12:52 pm
You can look it up on wikipedia and find out a lot of info on it, probably including the entire act.
The crux of the whole Act is to make the top dogs, the CEO, CFO, etc responsible for the financial disclosures that are required under SEC rules. Basically, now the CEO has to sign off saying he agrees with the numbers before they go public. And at every level, companies are requiring managers to sign off on reports, so no one will be able to say, I didn’t know about that like the Enron guys tried to do.
References :
My wife consults companies on SOX compliance.
November 13th, 2009 at 1:27 pm
The implications of Sarbanes-Oxley (SOX) is wide-reaching and most public companies are affected by it. It requires reporting and certification aimed at ensuring transparency and accuracy of accounting details (and hence investor confidence). Whether or not it achieves these goals is open to debate, but the need to comply is not. It is the law.
Sections 404 and 302 are the sections that require the most action on the part of the company by the Securities Exchange Commission.
Rather than try to explain all this in this small space, check out the SEC link in my sources.
SOX also requires companies to comply with privacy standards and hence websites, computer networks and databases are affected by SOX compliance standards.
References :
http://www.sec.gov/rules/proposed/s74002/card941503.pdf#search=%22sarbanes%20oxley%20404%20302%22