While SOX increased the accuracy and validity of financial information for outside stakeholders, it created some challenges for businesses attempting to comply with SOX guidelines.
Section of the SOX Act of is a mandate that requires senior management to certify the accuracy of the reported financial statement. Section of the SOX Act of is a requirement that management and auditors establish internal controls and reporting methods on the adequacy of those controls.
Section has very costly implications for publicly traded companies as it is expensive to establish and maintain the required internal controls.
The first deals with destruction and falsification of records. The second strictly defines the retention period for storing records. The third rule outlines the specific business records that companies need to store, which includes electronic communications. Besides the financial side of a business, such as the audits, accuracy and controls, the SOX Act of also outlines requirements for information technology departments regarding electronic records.
The standards outlined in the SOX Act of do not specify how a business should store its records, only that it's the IT department's responsibility to store them.Minnesota Society of Certified Public Accountants.
West 82nd Street, Ste Bloomington MN Ph: Fax: torosgazete.com The Sarbanes-Oxley Act of (SOX) was passed to prevent companies from engaging in accounting fraud similar to that perpetrated by Enron and Worldcom. While SOX increased the accuracy and validity of financial information for outside stakeholders, it created some challenges for businesses attempting to comply with SOX guidelines.
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Jul 10, · Advantages And Disadvantages Of The Sarbanes-Oxley Act On Tax Planning Sarbanes-Oxley Act of United States passed in brought the most important reform in the current public financial reporting of United torosgazete.com: E Writing Solutions.
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First, describe the tax advantages of Sarbanes-Oxley, citing at least 2 scholarly research sources. Second, discuss the tax disadvantages of Sarbanes-Oxley, citing 2 additional scholarly research sources.