Also known simply as “Sarbanes Oxley” or “SOX,” the Sarbanes-Oxley Act of 2002 is the public company accounting reform and investor protection act. It was passed in the wake of a number of corporate accounting scandals at companies like Enron and Arthur Andersen, which came to light after the year 2000, in order to reinforce investment confidence and protect investors by improving the accuracy and reliability of corporate disclosure.
Signed on July 30, 2002, the legislation’s goal is to create oversight at publicly traded companies and independent auditors so investors are not fooled by phony profits and revenue. Among the several results of Sarbanes-Oxley is the creation of an oversight board for accounting firms that audit publicly traded companies. It also stresses independence of auditors and financial analysts; addresses corporate responsibility at publicly traded companies; and protects whistleblowers.
At no point does the word “software” appear in the text of the Sarbanes-Oxley legislation. But in order to achieve the type of audit trails and records keeping required to be in compliance, most companies will use some type of content or records management software.
Section 404 of Sarbanes-Oxley is widely cited in the literature of software companies. It requires each annual report of a publicly traded company to contain an “internal control report”, which states the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting; and contains an assessment of the effectiveness of the internal control structure and procedures of the issuer for financial reporting.
Section 409 says that companies must disclose information on material changes in the financial condition or operations of the issuer on a rapid and current basis.
To read a summary of the entire Sarbanes-Oxley legislation, visit: http://thecaq.aicpa.org/Resources/Sarbanes+Oxley/.
For resources that can help you deal with Sarbanes-Oxley look below
Congress passed the sarbanes-oxley act in response to major corporate and accounting scandals-and many consider the act to be the most significant change in corporate governance and securities regulations in the past seventy years. sox requirements have brought about far-reaching changes for public ...
You may not believe that there’s a fun and easy way to comply with sarbanes –oxley, but once you have sarbanes-oxley for dummies, second edition in front of you, you’re sure to change your mind. this friendly guide gets you quickly up to speed with the latest sox legislation and shows you safe...
Congress passed the sarbanes-oxley act in response to major corporate and accounting scandals--and many consider the act to be the most significant change in corporate governance and securities regulations in the past seventy years. sox requirements have brought about far-reaching changes f...
Enron was once the seventh-largest company on the fortune 500. yet, in the wake of revelations of accounting irregularities and securities fraud, it became entangled in the greatest business scandal of a generation and was essentially blinked out of existence after declaring bankruptcy. similar acco...
Need help ensuring your campany complys with sarbanes-oxley? armed with this hands-on guide, you can detect early signs of fraud and operational loss, and safeguard your job, your employees' jobs, and the long-term success of your company. don't let fraud derail your career. protect yourself with th...
Everything corporate employees must know to understand--and comply with--the sarbanes-oxley act no law in recent memory has caused more confusion and apprehension in corporate america than the sarbanes-oxley act (soa). what is sarbanes-oxley? is a concise, comprehensive overview of the act, f...
Now updated and fully revised, the sarbanes-oxley section 404 implementation toolkit, second edition helps large or small companies continue to meet the complex internal control reporting requirements of sarbanes-oxley. brimming with a wealth of forms and checklists, the new edition helps you get up...
What is the importance of sections 302 and 404?"implementing" sox using coso and cobitsox's impact on foreign companies andnonprofitsachieving cost-effective sustainable compliancethe evolving role of the sec and the pcaobpraise for essentials of sarbanes-oxley"since its enactment in 2002, the sarba...
This casebook is intended as a supplement to any primary auditing text, as it helps extend and focus classroom discussions on the impact of sarbanes-oxley. it grabs student interest by providing engaging, real-world examples of the auditing environment pre- and post-sarbanes-oxley.
A complete guide to leveraging the power of sarbanes-oxley--specifically for nonprofitsthe first book to discuss the implications of sarbanes-oxley legislation as it relates to nonprofit organizations, sarbanes-oxley for nonprofits is an essential guide for all nonprofit executives and boards who wa...
Also known simply as “Sarbanes Oxley” or “SOX,” the Sarbanes-Oxley Act of 2002 is the public company accounting reform and investor protection act. It was passed in the wake of a number of corporate accounting scandals at companies like Enron and Arthur Andersen, which came to light after the year 2000, in order to reinforce investment confidence and protect investors by improving the accuracy and reliability of corporate disclosure. 
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