Article Views:
134
Ezine ready page
Ezine ready page
Posted on August 19, 2008 by Balva Rudick | Posted under Business
Purpose of Sarbanes Oxley
|
Two Major PurposesAlthough many people don't totally understand this piece of legislature, you'll find that there were a couple purposes of this Act. One purpose of Sarbanes Oxley was to make sure that there was some accountability as well as some transparency for companies and the companies were to comply with this new Act. They could end up dealing with punishment and finds if they did not comply. In fact, this law was so important that President George Bush actually felt that it was one of the most important pieces of legislature that was signed in regards to businesses in the past few years. The Main Purpose of the ActWhen it comes to the main purpose of Sarbanes Oxley, you'll find that it was to make sure that companies were to make sure that they provided disclosures of information and that their financial details were made available to those investing in the companies. Audit committees were also set up as well to make sure that companies were complying with this new act that was turned into law. Public Reports from CFO and CEOWhen it comes to the purpose of Sarbanes Oxley, you'll find that this Act also included a variety of measures that had to be taken with the CFOs and CEOs of various companies. The CFOs and CEOs of companies are now required to fill out public reports and they must certify their data and financial reports as well. You see, the Sarbanes Oxley Act was developed for the main reason of helping to protect investors that are investing in these companies so they are not hurt by companies that use fraudulent accounting. Today there is special software available for companies that will help them make sure they comply with this new act. It has definitely been a very important piece of legislature and has helped to renew the confidence of investors in companies today. About The Author: Balva Rudick is the Editor and Publisher of Article Click. For more FREE articles for your ezine and websites visit - www.articleclick.com |
Tags:
