First, Section 302 is a mandate that requires senior management to certify the accuracy of the reported financial statement (Staff,2017). Secondly, Section 404 is a requirement that management and auditors establish internal controls and reporting methods on the adequacy of those controls (Staff,2017). Furthermore, issuers are required to publish information in their annual reports concerning the scope and adequacy of the internal control structure and procedures for financial reporting, to include the assessment of the effectiveness of such controls and procedures (Soxlaw.com, 2017). Thirdly, Section 802 imposes strict penalties for violation of the SOX regulations that can lead to step fines as well as jail
First, Section 302 is a mandate that requires senior management to certify the accuracy of the reported financial statement (Staff,2017). Secondly, Section 404 is a requirement that management and auditors establish internal controls and reporting methods on the adequacy of those controls (Staff,2017). Furthermore, issuers are required to publish information in their annual reports concerning the scope and adequacy of the internal control structure and procedures for financial reporting, to include the assessment of the effectiveness of such controls and procedures (Soxlaw.com, 2017). Thirdly, Section 802 imposes strict penalties for violation of the SOX regulations that can lead to step fines as well as jail