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The Sarbanes-Oxley Act of 2002 is considered to be the most significant change to federal securities laws in the United States since the New Deal. It came in the wake of a series of corporate financial scandals, including those affecting Enron, Arthur Andersen, and WorldCom. Among the major provisions of the act are: criminal and civil penalties for securities violations, auditor independence / certification of internal audit work by external auditors and increased disclosure regarding executive compensation, insider trading and financial statements.
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Sarbanes Oxley Compliance - Links
While indisputably beneficial to the investing public, thousands of companies now face the daunting task of ensuring their operations are Sarbanes Oxley compliant. Auditing departments typically turn to a two pronged solution to achieve this goal. First, firms initiate a comprehensive external audit of the company by Sarbanes Oxley compliance consultants to identify areas of risk. Second, firms initiate a company-wide installation of automated software systems that provide the security and (electronic) paper trails necessary to guarantee compliance on a long term operational basis. Needless to say, the massive demand for Sarbanes-Oxley specialists has created a myriad of possibilities to choose from. Be sure to shop around to find a solution that is appropriate for your company's needs.
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