Sarbanes Oxley - Ceo's and Cfos

In: Business and Management

Submitted By Wheat4814
Words 954
Pages 4
The CEO's and CFO's Of Public Companies

Section 204 Sarbanes-Oxley Act (SOX) mandates that the public accounting firms, or auditors hired by a publicly traded companies will report to an Audit Committee that serves on the Board of Directors of that company. Also, this section outlines the information that the auditors will have to report to the Audit Committee such as, accounting policies and practices used by the company, alternative accounting policies for the disclosure of financial information that has been discussed with management, and the ramifications of such alternatives, and the accounting policies that the accounting firm recommends. Additionally, the accounting firm must report all written communications between the firm and management that includes the schedule of unadjusted differences.
Section 301 outlines the corporate responsibilities of Public Company Audit Committees, and outlines that oversight that this committee will have over registered public accounting firms that are retained to perform an audit of company financial statements to ensure that they are providing the correct information on the SEC filings, also referred to as Assurance of Compliance (Public Law 107–204, 2002). The public accounting firms will report directly to the audit committee, and this committee will sets procedures for how resolution disagreements that arise between the auditors and management if discrepancies are found in the financial reporting while conducting the audit report will be handled. Additionally, this sections mandates the members of the audit committee must sit on the board of directors, and be independent, meaning that members must not accepts fees from the issuer, or be affiliated with the issuer or subsidiaries. The audit committee must set procedures for filing complaints in regards to internal accounting controls and auditing matters. The…...

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