Sarbanes-Oxley Act Research Paper

Words: 1084
Pages: 5

Sarbanes-Oxley Act of 2002
Karla Azcue
ACC 120-09
Mr. Donald Senior

The Sarbanes-Oxley Act of 2002 is one of the most important legislations passed in the 21st century effecting financial practice and corporate governance. This act was passed on July 30, 2002 thanks to Representative Michael Oxley a republican from Ohio and Senator Paul Sarbanes a democrat from Maryland. They both passed two different bills that pertain to the same problem which had to do with corporation's auditing accountability and financial fraud problems within corporations. One was bill (S. 2673) brought by Senator Sarbanes and the other bill (H. R. 3763) brought by Representative Oxley. Both bills where passed separately one by the house and the other by the
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The signing officers are responsible for internal controls asking for a list of all deficiencies in the internal controls and information on any fraud that involves employees within internal activities.
• The second is the Sarbanes-Oxley section 401, found under Title IV of the act, pertaining to 'Disclosures in Periodic Reports'.
This section asks for financial statements to be published in an accurate manner and free of incorrect stamens, also all financial statements need to include all material off-balance sheet liabilities, obligations or transactions.
• The third one is the Sarbanes-Oxley section 404, found under Title IV of the act, pertaining to 'Management Assessment of Internal Controls'.
This section asks issuers to make publish information in their annual reports relating to the capacity and adequacy of the internal control structure and procedures for financial reporting. This statement shall also review the efficiency of such internal controls and procedures.
• The fourth one is the Sarbanes-Oxley section 409, found under Title IV of the act, pertaining to 'Real Time Issuer Disclosures'.
This section asks for issuers to make any information on material changes in their financial condition or operations available to the public in an easy-to- understand manner.

• The fifth one and last one is the Sarbanes-Oxley section 802, found under Title VIII