What is Sarbanes-Oxley Act?

The 2002 Sarbanes-Oxley Act is a federal law passed in response to large business and accounting, including those of Tyco International, Enron and WorldCom (now MCI) of the United States recent scandals. These scandals resulted in a decrease of public confidence in the accounting and reporting practices. Named after the authors, Senator Paul Sarbanes (D - Maryland) and Representative Michael g. Oxley (R - OH.), the law was approved by the Board, by a vote of 3-423 and Senate 99-0. Legislation is vast and establishes new standards or improved for all public company U.S. firms of accountants and management committees. The first and most important part of the law establishes a new quasi-public agency, the Public Company Accounting Oversight Board, which is responsible for overseeing and discipline firms accounting in their roles as the auditors of public companies. The main provisions of the Sarbanes-Oxley Act, include:

-Certification of financial reports by the Chief Executive officers and financial officers

-The independence of the Auditor, including outright prohibited on certain types of work for customers checking and pre-certification audit of the company of other audit work Committee

A - requirement that listed companies have totally independent audit committees that oversee the relationship between the company and its auditor

-Significantly more lengthy sentences maximum and larger fines for managers who knowingly and voluntarily defective financial, although the maximum penalties are largely irrelevant because judges generally follow the federal sentencing guidelines in the establishment of the actual punishment

-Protections used it allows for whistleblowers business fraud who pay back to lodge complaint with OSHA within 90 days, to win the reintegration and benefits, compensatory damages, orders to reduce pollution and fresh avocado reasonable and cost.