The Sarbanes-Oxley Act of 2002 is really a United States federal law passed in response towards the recent major corporate and accounting scandals just like (διαμερισματα προς ενοικιαση) those at Enron, Tyco International, and WorldCom (now MCI). These scandals resulted inside a decline of public trust (πωλουνται διαμερισματα) in accounting and reporting practices. Named after sponsors Senator Paul (διαμερισματα προς ενοικιαση) Sarbanes (D-Md. ) and Representative Michael (διαμερισματα προς ενοικιαση) G. Oxley (R-Oh (πωλουνται διαμερισματα). ), the Act was approved by the House by a vote of 423-3 (πωλουνται διαμερισματα) and by the Senate 99-0. The legislation is wide-ranging and establishes new or enhanced (διαμερισματα προς ενοικιαση) standards for all U. public (πωλουνται διαμερισματα) business Boards, Management, and public (πωλουνται διαμερισματα) accounting firms. The very first and most significant part on the Act establishes a brand new quasi-public agency, the Public Business Accounting Oversight Board, that is charged with overseeing and disciplining accounting organizations in their roles as auditors of public companies. Some of the major provisions of the Sarbanes-Oxley Act’s include:.
–Certification of financial reports by chief executive officers and chief financial officers–Auditor independence, just like outright bans on certain varieties of work for audit consumers and pre-certification by the company’s Audit Committee of all other non-audit work–A requirement that corporations listed on stock exchanges have fully independent audit committees that oversee the relationship between the business and its auditor–Significantly longer maximum jail sentences and bigger fines for corporate executives who knowingly and willfully misstate financial statements, although maximum sentences are largely irrelevant mainly because judges typically follow the Federal Sentencing Guidelines in setting actual sentences
–Employee protections allowing individuals corporate fraud whistleblowers who file complaints with OSHA inside 90 days, to win reinstatement, back pay and benefits, compensatory damages, abatement orders, and reasonable attorney fees and costs.