Sarbanes-Oxley Act Of 2002 Essay
Anti-fraud programs are now implemented under the Sarbanes-Oxley by all companies registered to conduct business in the United States. Such programs are closely monitored, evaluated and audited annually by the regulatory agencies to ensure and enforce compliance with the law.
Although most companies already employ some form of code of conduct and ethics guidelines, the new law imposes the need to introduce further enhancements to the already implemented procedures and guidelines such that the possibility of failing an audit is greatly diminished, all for the purpose of gaining public confidence and trust in the company’s handling of stakeholders finances.
Companies that are totally traded where their financial strategy contemplates a public debt offering should have a strong and effective fraud management policy. Fraud management provides significant cost savings opportunities along with mitigating legal risks and avoiding fines imposed by regulatory …show more content…
e) CEO and CFO must report any deficiencies in internal accounting controls, or any fraud involving the management of the audit committee.
f) CEO and CFO must indicate any material changes in internal accounting controls.
Under the Management Assessment of Internal Controls section:
Annual financial reports must include an Internal Control Report stating that management is responsible for an "adequate" internal control structure, and an assessment by management of the effectiveness of the control structure. Any shortcomings in these controls must also be reported. In addition, registered external auditors must attest to the accuracy of the company management and asserting that internal accounting controls are in place, operational and effective.
Under the Real Time Issuer Disclosures section:
Companies are required to disclose on all real-time basis information concerning material changes in its financial condition or operations.
Under the Attempts & Conspiracies to Commit Fraud Offenses section:
It is considered a crime for any person to corruptly alter, destroy, mutilate, or conceal any document with the intent to impair the object's integrity or availability for use in an official