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Title: Sarbanes-Oxley Compliance Post by: Khushi on June 17, 2007, 07:38:18 PM Sarbanes-Oxley Compliance
The Sarbanes-Oxley Act of 2002 is considered to be the most significant change to federal securities laws in the United States since the New Deal. It came in the wake of a series of corporate financial scandals, including those affecting Enron, Arthur Andersen, and WorldCom. Among the major provisions of the act are: criminal and civil penalties for securities violations, auditor independence / certification of internal audit work by external auditors and increased disclosure regarding executive compensation, insider trading and financial statements. While indisputably beneficial to the investing public, thousands of companies now face the daunting task of ensuring their operations are Sarbanes Oxley compliant. Auditing departments typically turn to a two pronged solution to achieve this goal. First, firms initiate a comprehensive external audit of the company by Sarbanes Oxley compliance consultants to identify areas of risk. Second, firms initiate a company-wide installation of automated software systems that provide the security and (electronic) paper trails necessary to guarantee compliance on a long term operational basis. Needless to say, the massive demand for Sarbanes-Oxley specialists has created a myriad of possibilities to choose from. Be sure to shop around to find a solution that is appropriate for your company's needs. Related terms: Sarbanes Oxley Consulting, Sarbanes Oxley Compliance software, compliance systems |