Sox act

SOX Act

Team C

LAW 531

12/02/2015

Isarael Camacho-Alicea

SOX Act

Today is of the utmost importance the presence of the Sarbanes-Oxley Act of 2002 companies, according to the laws and regulations of today day enterprises, at main level management must comply with rules and regulations established by the SOX Act, which was created for the protection of the invesiopnestas at the prospect of financial fraud by organizations or companies imponene financial statements of companies in order to avoid (Investopedia, LLC, 2015) accounting fraud.

Which law is applied falls on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and its guidelines or regulations. Risk management in part of a company and how internal controls are handled (Cheeseman, 2010). The implementation of financial internal controls due to the regulations of the SOX Act, this provides security for the inversionestas since it would be taking the necessary measures to make financial data versces (SOX-Online, 2012).

Within the SOX law there is a sections that are of the utmost importance that are 302 and 404, 802, 807. The section 302. Section 302 outlines the responsibilities for the CEO and the CFO. Section 404 of the addresses should be the evaluation of the management of internal controls. Sections 802 and 807 describe criminal penalties for altering documents and fraud. These four sections are the most important for senior executives since entering the penalties and sanctions that could be presented by not placing the assessments, maintaining internal controls or submission of inaccurate data (SOX-Online, 2012).

References

Cheeseman, H. R. (2010). Business Law (7th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Investopedia, LLC. (2015). Sarbanes-Oxley Act Of 2002 - SOX. Retrieved from http://www.investopedia.com/terms/s/sarbanesoxleyact.asp

SOX-Online. (2012). Sarbanes-Oxley Essential Information. Retrieved from http://www.sox-online.com/basics.html

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