Sarbanes Oxley Compliance

Written by Serena Berger
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The Sarbanes-Oxley Act of 2002 is one of the giants of recent legislation that has been passed regarding disclosures and financial accounting. Specifically, the act requires that CEOs, CFOs and independent auditors certify the accuracy of all disclosures and financial statements. They must also indicate whenever significant changes to internal procedures occur as well as identify deficiencies in their internal protocol.

Due to the legislation, any procedures relating to financial reporting must be fully documented. As a result, many companies will have to spend a considerable amount of time and money to ensure that they are in compliance with the Sarbanes-Oxley Act. There are not only legal repercussions for failure to comply, but also financial effects.

Results of Failing to Be Sarbanes-Oxley Compliant

If you do not comply with the regulations, you will be forced to disclose all relevant information to the public. If you are backed by investors or your company's stock is publicly traded, this can damage the company's reputation and affect investors' confidence. Fortunately, many companies are developing products that thoroughly explain what you need to do in order to comply.

These packages not only educate you by providing you with details about the Sarbanes-Oxley Act and compliance standards, but also guide you through ensuring that your company does comply. Part of the Sarbanes-Oxley Act places strict requirements on your audit committee. These solutions provide clear explanations as to what these committees must do and report. Making sure that your company is Sarbanes-Oxley compliant is the only way to ensure that you are not at legal risk.

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