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Sarbanes Oxley Title 3

Sarbanes Oxley Title 3 - Solution CEO and CFO are...

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Paige and Kirsten Sarbanes Oxley Title 3 301- Problem: Inside auditors falsifying financial information. Solution: All auditors must be on the Board of Directors and follow standard procedures Consequences: Prevents large amounts of conflict of interest in undermining company power. 302- Problem: CEO and CFO are not aware of procedures taking place. Solution: CEO and CFO have to provide proof of knowledge and that the information given is accurate. Consequences: Work load increased for the CEO and CFO. 303- Problem: Bribery was taking place between the auditor and the superiors causing fraudulent claims and information. Solution: No supervisors have direct contact with any of the auditors to influence the auditing process. Consequence: Having to hire more employees to regulate standards. 304- Problem: No one was taking responsibility for errors in the company records.
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Unformatted text preview: Solution: CEO and CFO are responsible for compensating for misleading or false information. Consequence: Responsibility is placed on the CEO and the CFO. 305-Problem: There was no enforcement of the rules and regulations of the SEC. Solution: The SEC has total and complete control over who can work in the accounting industry. Consequence: Companies have to open their books up to the SEC and they have control over the company’s assets and employees. 306-308-Problem: Employees were taking advantage of the company’s stock and assets. Solution: Amount of stock and assets owned by one person is regulated and monitored. Consequence: Takes more work to regulate the outside finances of the company and its effects....
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