A Comprehensive Sarbanes Oxley Act Summary

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

---

The Golden Key to Meeting Success

We all attend many meetings. I'm sure you have been... Read More

So, You Want to be in Management? Five Essential Factors that Will Determine Your Chances

The following information is based upon over 500 interviews with... Read More

The Thick Line Between Buddy and Boss

Q: One of my key employees is giving me trouble.... Read More

Innovation Management ? how will we make the go or kill decisions?

Creativity can be defined as problem identification and idea generation... Read More

Why Outsourcing Could Be The Best Thing You Do For Your Business

While it's probably not true to say that the traditional... Read More

Think Time... Its Now Or Never

I recently read an article published in the June, 2005... Read More

Managing Yo-Yo Style

Does being managed by others smack more of "Survivor" than... Read More

Organizing The Information

Putting a piece of paper in a file folder is... Read More

Bar Charts Brought to Life: Index of Interactive Information for HTML and PDF

Bar Charts and the Information ChallengeWhether one is an unknown... Read More

Top Ten Tips About Communicating with Your Employees Effectively

Communication is the basis of who you are as a... Read More

Make the Most of Your Time - Focus on Strengths

Once working and focused in tune with what they do... Read More

Why Business Owners Need Security

The main reason is to stop any potential lawsuits from... Read More

Business is About Making Money

Ask most people why they are in business and they... Read More

Best Workplaces

The Best Workplaces report (Financial Times, April 28, 2005) notes... Read More

Office Politics

Office politics! It's just another way of saying: "The employees... Read More

Cross Cultural Solutions for International Business

Globalisation, the expansion of intercontinental trade, technological advances and the... Read More

Necessary Tasks You May Want to Delegate

As a business owner, time is of the essence. Running... Read More

Business Innovation ? the Value of Structure

Creativity can be defined as problem identification and idea generation... Read More

Communicating When A Crisis Strikes

How would you handle communication if your business or practice... Read More

Creativity and Innovation Management ? Competition versus Collaboration

There is much confusion as to whether competition or collaboration... Read More

Inspiring Loyalty and Contentment in Your Workforce

One of the first things I look at when I... Read More

Knowing versus Doing - Execution In The Workplace

Have you ever worked with someone who always seemed to... Read More

Make Change Easy - Get Involved!

There are wild variances in how much involvement organisations are... Read More

Focus on Outcomes to Keep Your Business On-Course

Did you know that an airplane in flight is off... Read More

Jewelry Use by Employees

Many companies have dress codes, which include jewelry. Some companies... Read More

Employees - Treat Them the Way They Expect to be Treated

When you have to deal with one of your team... Read More

10 Steps When You Need Help in Your Business

If you think ahead and plan, many nightmare panic and... Read More

Smart Hiring: What Makes the Right Employee?

Good hires do not happen by accident or luck. In... Read More

The Ivory Tower Syndrome

"His cardinal mistake is that he isolates himself, and allows... Read More

How to Manage Your People Well: Tips for Managers of Training

As a training manager, there are two important aspects to... Read More

Quick Tip - Effective Meetings Earn a Profit

Most people treat meetings as a free resource that can... Read More

ISO 9001 Registration ? 8 Steps for Success

You've made the plans, built the quality system and conducted... Read More

Beyond Management Coaching: When Things Are Getting Out of Control

Leaders and Managers often ask us, 'What do you do... Read More