When most people think of the Sarbanes Oxley act they think of the recent rash of corporate big wigs who have been in the numerous scandal facing America such as the Enron situation, the Worldcom situation and the Tyco, not to mention the many scandals since. In these situations we see that there has been a great and public feeling of being let down, since now we have lost our faith in the accounting and the reporting practices of our big business. There has been so many problems that I think this new act will help use to regain our status. Once the most powerful countries in the world we are allowing setbacks to make us loose former glories.
With this new Sarbanes-Oxley Act you will find that it includes
- It puts bans on the type of work for clients so you will have auditor independence.
- There is also a requirement that if your company is a part of the stock exchange, you will be able to have an independit auditing community, they will take the time to help you get a relationshiop going between you and your auditor.
- They are now imposing longer jail sentences and they are now imposing stagering fines in the attempt to keep corporations on the financial straight and narrow path.
- They also have imposed some "whistleblower" policies that protect the employees from being treated harshly or being fired because they reported misapropriations of funds.
There are many different great benefits of this act, that a company should know every aspect of this act in case they find that this type of thing is happening, so that it can be eliminated.
