|
|||||
|
|||||
Inside the Sarbanes-Oxley RegulationsThe Sarbanes–Oxley Act of 2002 is a set of federal governmental regulations enacted following a surge of big business accounting scandals among the Enron Corporation, World Com, Tyco International, and others. The legislation is officially entitled the Public Company Accounting Reform and Investor Protection Act of 2002. Its provisions detail new, strict reporting regulations for all U.S. public company boards of directors and public accounting firms that report on their activities.The guiding regulatory arm created in the Sarbanes–Oxley legislation is the Public Company Accounting Oversight Board, a private-sector, non-profit corporation charged with oversight of public company auditors to "protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports." Other provisions of the regulations include the mandatory certification of all financial reports by companies' chief executive officers and chief financial officers (if applicable). Sarbanes–Oxley regulations prevent most personal loans to CEOs and other major financial officers while increasing criminal and civil penalties for insider trading or violations of securities laws. Maximum jail sentences and fines are increased for corporate executives who report untruthful financial statements. Auditors, under the act, are to be granted full impartiality and independence of any corporate organization listed on the stock exchanges. Because of increased operating costs under Sarbanes–Oxley, many smaller companies who once publicly traded have de-listed to become privately held to avoid complying with the regulations. Act sponsors Senator Paul Sarbanes (D–Md.) and Rep. Michael G. Oxley (R–Oh.), are retiring after the current term. |
Accounting Categories Degree Types Online Canadian Schools Accounting Careers and Duties Other Accounting Articles CPA Info Schools By State Selected Cities |
||||
