Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Sarbanes-Oxley’s Men in Black

Sarbanes-Oxley’s Men in Black

by Rick Turoczy on March 1, 2005

Under the Sarbanes-Oxley Act (SOX) of 2002, public companies are required to not only disclose the data in their accounting books, they also have to show how they arrived at those numbers in the first place. But who will be watching to see if companies comply in the wake of the scandals surrounding the likes of Enron and WorldCom, whose cooked books resulted in millions in investor losses?

If problems are found, a publicly traded company is responsible for disclosing them and fixing them. “They are supposed to do it by law,” said Alex Bakman, CEO of Ecora Software Corp., in Portsmouth, N.H. Lack of compliance with it results in not only company liability, but personal liability as well, including criminal actions against chief executive officers and chief financial officers. “The SEC is not messing around,” he said. “This thing has teeth.”

Sarbanes-Oxley’s Men in Black

Leave a Comment

Previous post:

Next post: