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    Presented by Syed Kashif Shah (Group Leader) Group Members Kashif Ali, M.Hamid Waqar Khan Bba 7

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    Jemila Satchi
    The document summarizes the Sarbanes-Oxley Act of 2002 (SOX), which established new regulations to improve corporate governance and financial disclosures. It was presented by Syed Kashif Shah and group members Kashif Ali, M. Hamid, and Waqar Khan. Major elements of SOX include establishing the Public Company Accounting Oversight Board to regulate auditors, increasing auditor independence, strengthening corporate responsibility, and enhancing financial disclosures and penalties for non-compliance.

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    Presented by Syed Kashif Shah (Group Leader) Group Members Kashif Ali, M.Hamid Waqar Khan Bba 7

    Uploaded by

    Jemila Satchi
    36 views22 pages
    The document summarizes the Sarbanes-Oxley Act of 2002 (SOX), which established new regulations to improve corporate governance and financial disclosures. It was presented by Syed Kashif Shah and group members Kashif Ali, M. Hamid, and Waqar Khan. Major elements of SOX include establishing the Public Company Accounting Oversight Board to regulate auditors, increasing auditor independence, strengthening corporate responsibility, and enhancing financial disclosures and penalties for non-compliance.

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    SOX basics

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    The document summarizes the Sarbanes-Oxley Act of 2002 (SOX), which established new regulations to improve corporate governance and financial disclosures. It was presented by Syed Kashif Shah and group members Kashif Ali, M. Hamid, and Waqar Khan. Major elements of SOX include establishing the Public Company Accounting Oversight Board to regulate auditors, increasing auditor independence, strengthening corporate responsibility, and enhancing financial disclosures and penalties for non-compliance.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    36 views22 pages

    Presented by Syed Kashif Shah (Group Leader) Group Members Kashif Ali, M.Hamid Waqar Khan Bba 7

    Uploaded by

    Jemila Satchi
    The document summarizes the Sarbanes-Oxley Act of 2002 (SOX), which established new regulations to improve corporate governance and financial disclosures. It was presented by Syed Kashif Shah and group members Kashif Ali, M. Hamid, and Waqar Khan. Major elements of SOX include establishing the Public Company Accounting Oversight Board to regulate auditors, increasing auditor independence, strengthening corporate responsibility, and enhancing financial disclosures and penalties for non-compliance.

    Copyright:

    © All Rights Reserved
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    of 22

    Presented By

    Syed Kashif Shah (Group Leader)


    Group Members
    Kashif Ali , M.Hamid
    Waqar Khan
    BBA 7th
    Sarbanes-Oxley Act 2002
     Nick Name(s)=Sabanes-Oxley, Sarbox, SOX

     Enacted By The 107th United States Congress

     Passed The House on April 24, 2002 Votes 334-90

     Passed The Senate on July 15, 2002

     Signed Into law by President George W.Bush on July 30, 2002


    Major Elements
     1.Public Company Accounting Oversight Board (PCAOB)
     2.Auditor Independence
     3.Corporate Responsibility
     4.Enhanced Financial Disclosures
     5.Analyst Conflicts
     6.Commission Resources and Authority
     7.Studies and Reports
     8.Corporate and Criminal Fraud Accountability
     9.White Collar Crime Penalty Enhancement
     10.Corporate Tax Return
     11.Corporate Fraud Accountability
    1.Public Company Accounting
    Oversight Board (PCAOB)
     Title 1
     Provide Independent Public Accounting Firms Audit Services
    (Auditors)
     register public accounting firms that prepare audit reports
    for issuers.
     set auditing, quality control, ethics, independence and other
    standards relating to the preparation of audit reports of
    issuers
     set auditing, quality control, ethics, independence and other
    standards relating to the preparation of audit reports of
    issuers
    2.Auditor Independence
     Title II
     Establishes Standards for External Auditor Independence
     Address new Auditor Approval Requirements
     Auditor Reporting Requirements
     Restricts Auditing firms from Providing non-Audit services
    (e.g Consulting) for same clients
    3.Corporate Responsibility
     Title III
     Mandates That Senior Executives Take Responsibility
    for Accuracy & Completeness of CFR’s.
     Interaction of External Auditors & Corporate Audit
    Committee
     Penalties for Non-Compliance
    4.Enhanced Financial Disclosures
     Title IV
     It describe Enhanced Reporting Requirements
     Off-balance Sheet Transactions
     Pro-forma Figures
     Stock Transactions
     It Requires Timely Reporting of Material in Financial
    Condition
    5.Analyst Conflicts of Interest
     Title V
     It Includes Measures & Designed To help Restore
    Investor
     It defines Codes of Conduct for Securities analysts
     Disclosure of Knowable Things
     To Facilitate Investor
    6.Commission Resources And
    Authority
     Title VI
     Defines Practices to restore Investor Confidence
    Securities Analysts.
     It also Defines The SEC’s Authority
     To Stop Those Professionals Who Which don't follow
    the Predefine Conditions
     Broker
     Dealer
     Advisor
    7.Studies And Reports
     Requires The Comptroller General And SEC to
    Perform Various Studies and Report Their Findings
     Studies And Reports Include The Effects of
    Consolidation of Public Accounting firms
     The Role of Credit Rating Agencies In the Operation of
    Securities Markets
     Securities Violations and enforcement Actions
    8.Corporate And Criminal Fraud
    Accountability
     Title VIII
     It Refers To The “Corporate and Criminal Fraud
    Accountability Act”
     It Describes Specific Criminal Penalties for
    Manipulation, Destruction of Financial Records
     OR Other Interference With Investigations, While
    Providing Certain Protections for Whistle-Blowers
    9.White Collar Crime Penalty
    Enhancement
     Title IX
     This Section is Also Called “White Collar Crime
    Penalty Enhancement Act”.
     This Section Increases The Criminal Penalties
    associated with White Collar Crimes & Conspiracies
     It Recommends & Specifically adds Failure to Certify
    Corporate Reports as a Criminal Offense
    10.Corporate Tax Return
     Title X
     The Chief Executive Office Should Sign The Company
    Tax Return
    11.Corporate Fraud Accountability
     Title IX
     It Identifies Corporate Fraud & Records Tampering as
    Criminal Offense And Joins those Offenses To Specific
    Penalties
     The SEC To Restore To Temporarily Freezing
    Transactions or Payments That have been deemed
    “Large” or “unusual”
    Sox Act Sections
     Sox Section 302
     Sox Section 401
     Sox Section 404
     Sox Section 409
     Sox Section 802
     Sox Section 906
    Sox Section 302:Disclosure of
    Controls
     The Act Mandates a set of Internal Procedures
    Designed to ensure Accurate financial Disclosure
     The Signing officers Must Certify that they are
    “Responsible for Establishing & Maintaining Internal
    Controls” & “Have Designed such controls to ensure
    that material Information relating to the Company &
    its Consolidated Subsidiaries is made known to such
    officers by others within those entities, Particularly
    during the period in which the Periodic Reports are
    Being Prepared
     External Auditors Opinion
    Sox Section 401:Disclosures In Periodic
    Reports (Off-Balance Sheet Items)
     All materials of of-Balance Sheet Items must be
    Disclose
     To Follow the Accounting Principles
    Sox Section 404:Assessment of
    Internal Control
     Issuers are required to publish information in their
    annual reports concerning the scope and adequacy of
    the internal control.
     structure and procedures for financial reporting.
     This statement shall also assess the effectiveness of
    such internal controls and procedures.
     The registered accounting firm shall, in the same
    report, attest to and report on the assessment on the
    effectiveness of the internal control structure and
    procedures for financial reporting.
    Sox 409:Enhanced Financial
    Disclosures
     Issuers are required to disclose to the public, on an
    urgent basis, information on material changes in their
    financial condition or operations.
     These disclosures are to be presented in terms that are
    easy to understand supported by trend and qualitative
    information of graphic presentations as appropriate.
    Sox Section 802:Criminal Penalties for
    Influencing US Agency
    Investigation/Proper Administration
     This section imposes penalties of fines and/or up to 20
    years imprisonment for destroying, mutilating,
    concealing, falsifying records, documents or tangible
    objects with the intent to obstruct, impede or
    influence a legal investigation.
     This section also imposes penalties of fines and/or
    imprisonment up to 10 years.
    Sox Section 902:Criminal Penalties for
    CEO/CFO Financial Statement
    Certification
     Certification of Periodic Reports
     When any Executive (CEO/CFO) Certify any
    Discomfort Statements……
     Fines
     $1000000 (1 Million $)
     $5000000 (5 Million $)
     Imprisoned 20 years
     $5000000 (5 Million $) Imprisoned 20 Years=Both
    */

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