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Sarbanes-Oxley Act of 2002Overview Related Programs President Bush signed into law the Sarbanes-Oxley Act of 2002, changing forever the financial reporting landscape for finance professionals. Congress has mandated numerous changes to financial reporting:
An Overview of Major Points in the ActOn July 30, President Bush signed into law the Sarbanes-Oxley Act of 2002. The most dramatic change to federal securities laws since the 1930s, the Act radically redesigns federal regulation of public company corporate governance and reporting obligations. It also significantly tightens accountability standards for directors and officers, auditors, securities analysts and legal counsel. Among the key changes: -Effective April 26, 2003, the SEC directed the NYSE and Nasdaq to prohibit listing any public company whose audit committee does not comply with a new list of requirements affecting auditor appointment, compensation and oversight. The audit committee must consist solely of independent directors. -Effective immediately, CEOs and CFOs must certify in each periodic report containing financial statements that the report fully complies with Sections 13(a) and 15(d) of the Securities Exchange Act of 1934 and that the information fairly presents the company’s financial condition and results of operations. -Certifying officers face penalties for false certification of $1,000,000 and/or up to 10 years’ imprisonment for “knowing” violation and $5,000,000 and/or up to 20 years’ imprisonment for “willing” violation. -Effective immediately, no public company may make, extend, modify or renew any personal loan to its executive officers or directors, with limited exceptions. -Effective August 29, 2002, the Act changed the deadline for insiders to report any trading in their companies’ securities to within two business days after the execution date of the transaction. -Effective immediately, each company must disclose “on a rapid and current basis” additional information about the company’s financial condition or operations as the SEC determines is necessary or useful to investors or in the public interest. -Effective immediately, all annual reports filed with the SEC containing financial statements must include all material corrections identified by a public accounting firm. The Act creates several new crimes for securities violations, effective immediately, including: -Destroying, altering or falsifying records with the intent to impede or influence any federal investigation or bankruptcy proceeding. -Knowing and willful failure by an accountant to maintain all audit or workpapers for five years. -Knowingly executing a scheme to defraud investors in connection with any security. Related ProgramsThese CPE INC. programs will bring you up to date on the changes required by the Sarbanes-Oxley Act of 2002. 2010 SEC Conference: An Accounting & Reporting Update for Public Companies Houston, TX The St. Regis Houston June 10-11, 2010 Washington, D.C. The Ritz-Carlton, Tysons Corner September 23-24, 2010 A concise review of recent developments, now updated to include new SEC requirements mandated by the Sarbanes-Oxley Act of 2002. Sarbanes-Oxley: A Complete Review and Update Provides a thorough understanding of the Sarbanes-Oxley Act and how the rules and regulations affect your public company. |