Sarbanes-Oxley Act Case Study

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Sarbanes-Oxley Act (SOX) which is to “protect investors by improving the accuracy and reliability of corporate disclosures” and to give back investors’ assurance in the honesty of firms financial reporting (Lobo, 2006). With that, SOX has worked with the SEC to require the CEO/CFO of a company to certify “material accuracy and completeness of the financial statements” (Lobo, 2006). Under SOX, there are criminal consequences on a CEO/CFO, if a company that is confirming their financial statements that do not meet the requirements of SOX. The consequences and fines to having false statements when confirming the company’s financial statements increased to $500,000 and 20 years in federal prison (Lobo, 2006).
Under Section 302 of Sarbanes-Oxley

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