Essay on Sarbanes-Oxley Act of 2002
Week # 2 Individual Assignment
Sox Key Main Aspects for a Regulatory Environment
Sarbanes-Oxley Act was passed in 2002 by former president George Bush. Essentially to combat the Enron crisis. The Sox Act basically has regulatory control and creates an enviroment that is looking out for the public. Ideally this regulatory environment protects the public from fraud within corporations. Understanding, that while having this regulatory control at times the Sox requirements need to be tweaked or amended. Not only now but in the future as well. The main aspects of the Sox act are essentially looking out for our welfare as a consumer. Our government has the obligation to regulate …show more content…
Article 404 of the Sarbanes-Oxley act is another article that is a huge key in regulatory compliance. This article is defined as Assessment of Internal controls. Essentially making companies or corporations publish information about their controls and procedures for financial reporting.
Article 409 is another key component to the Sox act. This article is defined by Real Time Issuer disclosures. Essentially a company or corporation is required to disclose portent financial information to the public if there is a sudden change to their financial condition or something within the operational realm. Also when this is disclosed it has to be done in layman terms for everyone to understand. Another key step in holding people accountable and regulating companies or corporations.
The one article that everyone will pay attention too is section 802. This is the criminal penalty section. This section is defined by Criminal Penalties for altering documents. Essentially stating that any destruction, falsifying or hiding and not disclosing any financial information is punishable by a 20-year prison sentence, fines and various penalties. Another step of accountability in relation to section 302; a CEO is subjected to these terms and does so willingly when he