Understanding the Sarbanes-Oxley Act of 2002

Understanding the Sarbanes-Oxley Act will be a key to assuring full compliance. A brief review of the specific sections, their requirements and dates for compliance can be helpful:

Sec. 201, 202, 206 - Conflicts of interest (real or perceived) must be avoided by restricting non-audit services and external audits.

Sec. 301, 305 - Boards and audit committees should consist of knowledgeable people who will support the interests of shareholders, and challenge company procedures where necessary.

Sec. 302 - Chief executives must take personal responsibility for the accuracy of all financial statements.

Sec. 401 - Financial Statements must fairly and accurately represent the condition of the business.

Sec. 404 - Various internal controls must be in place to curtail fraud and abuse.

Sec. 406 - Companies are required to demonstrate a strong system of ethical procedures in all aspects of their operations and at all levels.

For a full PDF copy of the Sarbanes-Oxley Act visit the Government Printing Office website:
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=107_cong_bills
&docid=f:h3763enr.tst.pdf