Individual and corporate security stand in the center of the Sarbanes Oxley Act summary, as they are the areas that suffered most changes. New criminal and civil penalties were announced for security violations and a new system of certification of internal audit efforts was set. With the new auditor independence provision, auditors from outside the system have been granted more access to company data. Other items comprised in the Sarbanes Oxley Act summary focus on an increased disclosure of compensation methods and systems, especially for upper management.
This new act brought a lot of unrest and insecurity with companies, who had to adapt their work methods to comply with it. However, the benefits of the Sarbanes Oxley Act to the investors and the general public are obvious, so even those company managers who faced compliance problems understood the importance of the new laws. Most companies begin by starting an external audit of their company, so as to see if it is compliant with the Sarbanes Oxley Act. After the most risky areas of the company have been identified, the company usually proceeds to install and implement software solutions. The need for increased security is taken seriously by all companies that wish to ensure maximum compliance with the act.
Here is a section of the Sarbanes Oxley Act summary which points out the most relevant prohibited activities:
"Section 201: Services Outside The Scope Of Practice Of Auditors; Prohibited Activities. It shall be "unlawful" for a registered public accounting firm to provide any non-audit service to an issuer contemporaneously with the audit, including: (1) bookkeeping or other services related to the accounting records or financial statements of the audit client; (2) financial information systems design and implementation; (3) appraisal or valuation services, fairness opinions, or contribution-in-kind reports; (4) actuarial services; (5) internal audit outsourcing services; (6) management functions or human resources; (7) broker or dealer, investment adviser, or investment banking services; (8) legal services and expert services unrelated to the audit; (9) any other service that the Board determines, by regulation, is impermissible. The Board may, on a case-by-case basis, exempt from these prohibitions any person, issuer, public accounting firm, or transaction, subject to review by the Commission."
Michael Gatt is the webmaster of several successful business related compliance websites. For more Complete and Daily Updated News and Information about the SOX Act please check out his website at Sarbanes Oxley Act Summary
How can you get more attention for your conference and... Read More
Have you ever heard yourself say to a team member... Read More
There ought to be a sign posted on every closed... Read More
Creativity can be defined as problem identification and idea generation... Read More
As we near the end of summer, here is a... Read More
Creativity can be defined as problem identification and idea generation... Read More
Facilitating good communication can make the difference between a well... Read More
When you're starting a business, you might wish for a... Read More
Kicking Winning Business Goals The competition for business... Read More
Part One of Creating Well-Defined Processes SeriesWhat if your sales... Read More
When you are acclaimed for excellence during times of crisis... Read More
Does being managed by others smack more of "Survivor" than... Read More
If you think the power move has costs, consider the... Read More
My client had faced the same challenge, which was frustrating... Read More
Many work environments now are open plan, with only a... Read More
E-mail, voicemail, "got a minute?" interruptions, multiple projects... Read More
Firing, sacking, letting go or terminating people is unpleasant. There... Read More
I've just watched, again, an episode in the Back to... Read More
There is no sure fire route to commercial success, but... Read More
Human Resource Communications and Corporate Communications ? are they one... Read More
OBSTRUCTIONS: 1. Staff deficiencies. Lack of confidence in employees quite... Read More
Are you trying to hire dozens of hourly workers or... Read More
"Where did it go? It was here yesterday. Wait. Here... Read More
INTRODUCTIONThe typical approach executive teams use to cascade, or roll... Read More
Teamwork is a process that can be experienced outdoors and... Read More
Everyone involved in running a business from the smallest start-up... Read More
Test your assumptions about everything.Assumptions have a way of creeping... Read More
Much of the literature and advice on implementing business change... Read More
I witnessed some interesting behaviour from one of our premier... Read More
For small business owners, an enthusiastic vision for smooth, steady... Read More
Is your online business disaster-proof? Online businesses face a unique... Read More
The following information is based upon over 500 interviews with... Read More
Soon after I finished a brief seminar on how to... Read More
Which documents must I keep for ISO 9001?In addition to... Read More
A major problem for employers today is attracting the best... Read More
Creativity can be defined as problem identification and idea generation... Read More
One of the things that most impacts people's productivity is... Read More
Perhaps the most common theme I've heard in working with... Read More
We all are on a quest for knowledge. Whether its... Read More
Decision-making shows up throughout the problem-solving process. The decisions may... Read More
Many kinds of interferences or disturbances can confuse a message.... Read More
Out of the box thinking is a popular fad today.... Read More
Communicate! Don't leave you key stakeholders guessing.We are generally not... Read More
By sharing how well you are doing and how well... Read More
Want to hear a fascinating story? Let's sit in at... Read More
Here's a brief story I encountered while leaving Newark International... Read More
It is becoming more common for employers to require employees... Read More
To a narcissist-employer, the members of his "staff" are Secondary... Read More
Putting a piece of paper in a file folder is... Read More
We all spend time on planning vacations. If it's not... Read More
If you have the entrepreneurial spirit (which clearly you have!),... Read More
STEPS TOWARDS A GOOD APPRAISAL INTERVIEW:Don't say: "You just don't... Read More
Late last year I was presenting a workshop for the... Read More
Creativity can be defined as problem identification and idea generation... Read More
Even in today's still uncertain economic times, there are companies... Read More
You, the Entrepreneur, are 'normally' a type-A individual. One who... Read More
Everyone knows that an agenda is the key to an... Read More
Do you know how many customers you have that are... Read More
Life can sometimes be unexciting if not refreshed by the... Read More
These factors where determined by interviews with and books from... Read More
Managing, supervising, being a team leader is the hardest job... Read More
I first met Roland (not his real name) in 1972.... Read More
Meetings can be the life-blood of an organisation or the... Read More
For small business owners, an enthusiastic vision for smooth, steady... Read More
Speak of operations assessment, and we'll hear its significant value.... Read More
Acknowledgement is about recognition or attention from another person. It... Read More
Business Management |