Sarbanes Oxley

The Sarbanes-Oxley Act of 2002 (SOX) has gotten a lot of media attention in the past few years and came on the heels of some very well-publicized corporate scandals, most notably the collapse of Enron. SOX creates legal liability for senior executives of publicly traded companies, potentially including stiff prison sentences and fines of up to $5,000,000 per violation, for willfully certifying financial statements that do not meet the requirements of the statute. Section 404 of SOX requires senior management, pursuant to rules issued by the Securities and Exchange Commission (SEC), to attest to:"(1) the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting; and (2) ...the effectiveness of the internal control structure and procedures of the issuer for financial reporting." (See Chapter 13 sidebar "SEC Announces Next Steps for Sarbanes-Oxley Implementation to Help Small Companies" for an update on recent changes related to Section 404). Section 302 also requires that pursuant to SEC regulations, officers signing company financial reports certify that they are "responsible for establishing and maintaining internal controls," and "have evaluated the effectiveness" of those controls and reported their conclusions as to the same.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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