The Sarbanes-Oxley Act: Protecting Corporate Assets

It is like an internal control brick wall, or a computer firewall. Internal control is the way the company keeps the company and its assets safe while firmly ensuring complete and accurate accounting records. Internal control is responsible for the overall welfare of the company, from assets to employees, even sales and reputation. A variety of things are involved in internal control, such as Sarbanes - Oxley, stock benefits, benefits, asset security, accounting accuracy.

The Sarbanes-Oxley method is the field of financial ethics that has the greatest influence on today's organization. The Sarbanes-Oxley Act is aimed at protecting investors from corporate accounting injustice. Named after its sponsors Sarbanes and Oxley, it is called "SOX" and "Sarbox", but its official name is 2002 Public Company Accounting Reform and Investor Protection Act. The Sarbanes-Oxley Act supports the organization's financial information regulation, such as "establishment of Public Accounting Supervision Committee for listed companies, auditor independence, strengthening disclosure of corporate responsibility and financial information". The purpose of considering outdated legislative audit requirements is considered to be one of the most important changes in the United States since the New Deal of the 1930s. This law gives the Securities and Exchange Commission additional authority and responsibility. "(Sarbanes-Oxley method)

In 2002, the Sarbanes-Oxley Act was enacted to protect the value of shareholders and protect the public from infringement of companies. The Sarbanes-Oxley method deals with four major issues in corporate governance of public companies. First, the bill developed and implemented auditing standards and established a supervisory committee to train disciplinary auditors. Second, the bill aims to promote the independence of the auditor. Third, this measure enhances corporate responsibility by requiring CEO and CFO to certify all periodic reports, including company financial results. After understanding the proof of a false statement, it is criminally responsible. Finally, the Act enhances financial disclosure of off-balance sheet transactions and obligations with consolidated entities and individuals. These key provisions of the Sarbanes-Oxley Act greatly strengthened the Board's role and made management more accountable.

In 1989, Congress passed the whistleblower protection law to protect federal officials from workplace retaliation when cheating was revealed. In 2002, SOX (Sarbanes - Oxley Act) introduced guidance on reporting to listed companies and strongly protected whistling employees. Input ombudsman: An independent representative who can advise employees (or students, citizens etc.) and directly report to CEOs outside the company management level or the board of directors. This approach provides guidance and confidentiality to employees and provides early warning and practical advice to the company.