Essay on The Sarbanes-Oxley Act
852 Words4 Pages
There are so many organizations today that are using the Sarbanes-Oxley (SOX) legislation that helps to safeguard their company and their financial records. The Sarbanes-Oxley act began in 2002 and the purpose behind this act was to protect organizations, it had a major impact on accounting and record keeping. Because of Enron, they passed this act for publicly-traded corporations to better implement control to their enterprise data. “Named after Senator Paul Sarbanes and Representative Michael Oxley, who also set a number of deadlines for compliance” (SOX Law ). “The Sarbanes-Oxley Act is arranged into eleven titles, but the most important sections within these are often considered to be 302, 401, 404, 409, 802 and 906” (SOX Law ). The…show more content…
This is the type of service that IBM is offering to their customers, and being SOX compliant. “Section 404 mandates that company provide an annual report on internal controls, attested to by an external audit firm” (IBM). While IBM is offering these services there are other companies that are doing the same service too.
Protiviti an independent global risk and internal audit advisory firm, surveys client attitudes about the costs, and the benefits, of compliance with the law. Protiviti in many cases is helping to manage document controls, to perform tests, and develop an option of the internal controls that the external auditors rely on. According to this company they believe that “Companies with weak or non-existent internal controls over financial reporting are more susceptible to fraud and those frauds will take longer to uncover” (McKenna, 2011). They have reported that a lot of companies spend between $100,000 and 1,000,000,000 on compliance activities; this depends on the size of the company. About 50 percent of companies do most of their SOX work internally within the company. Within the corporation, Protivite address the smaller companies in three areas where their internal control compliance. Companies will find that they are behind in IT general controls, spreadsheet controls, and segregation of duties. They are doing what they can to help in these areas.
To conclude, the Sarbanes-Oxley act
Скажи мне, что происходит, - потребовал. - Сегодня здесь все идет кувырком. В чем. - Пусти меня, - сказала Сьюзан, стараясь говорить как можно спокойнее.