Running head: SARBANES- OXLEY ACT ATICLE ANALYSIS
Sarbanes- Oxley Act Article Analysis
University of Phoenix
Sarbanes- Oxley Act Article Analysis Internal controls mandated by the Sarbanes – Oxley act have proven to be a difficult hurdle for publicly held companies to comply with. (Barnes & Thornburg, 2004) The internal control requirements of the Sarbanes – Oxley act have laid the responsibility of internal audits, effectiveness and efficiency of internal auditing controls squarely on the shoulders of senior management, audit committees they employ and external auditors. The compliance responsibility includes certification and consent forms to be filed by all involved parties. The Sarbanes – Oxley internal control requirements have been “widely considered to be the most difficult, time-consuming, and expensive burden imposed the legislation..” (Barnes & Thornburg, p. 2) Internal controls over financial reporting include maintaining accurate records, providing assurance that transactions are recorded correctly, and assurance that a company’s prevention or detection of fraudulent activity is reported on financial statements. (Barnes & Thornburg, 2004) …show more content…
3) Senior management is responsible to oversee or create the internal controls of a company to ensure accurate financial reporting. Management must create annual reports divulging the company’s internal controls and any weaknesses identified. Management is required to report and disclose, on a quarterly basis, any information pertaining to internal control process weaknesses or internal controls that may effect financial reporting. Senior management is required to spend more time and effort in the area of audit. Senior management is more accountable for the accuracy of financial statements due to the Sarbanes – Oxley
Sarbanes- Oxley Act Article Analysis
University of Phoenix
Sarbanes- Oxley Act Article Analysis Internal controls mandated by the Sarbanes – Oxley act have proven to be a difficult hurdle for publicly held companies to comply with. (Barnes & Thornburg, 2004) The internal control requirements of the Sarbanes – Oxley act have laid the responsibility of internal audits, effectiveness and efficiency of internal auditing controls squarely on the shoulders of senior management, audit committees they employ and external auditors. The compliance responsibility includes certification and consent forms to be filed by all involved parties. The Sarbanes – Oxley internal control requirements have been “widely considered to be the most difficult, time-consuming, and expensive burden imposed the legislation..” (Barnes & Thornburg, p. 2) Internal controls over financial reporting include maintaining accurate records, providing assurance that transactions are recorded correctly, and assurance that a company’s prevention or detection of fraudulent activity is reported on financial statements. (Barnes & Thornburg, 2004) …show more content…
3) Senior management is responsible to oversee or create the internal controls of a company to ensure accurate financial reporting. Management must create annual reports divulging the company’s internal controls and any weaknesses identified. Management is required to report and disclose, on a quarterly basis, any information pertaining to internal control process weaknesses or internal controls that may effect financial reporting. Senior management is required to spend more time and effort in the area of audit. Senior management is more accountable for the accuracy of financial statements due to the Sarbanes – Oxley