The sox act has many different provisions which

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The SOX Act has many different provisions, which detail the procedures of how big businesses must report their annual financial history. Out of the eleven sections that make up the act, a few offer the most insight on what the Act really is. Section 302, for example, states that all publicly traded businesses must have a signing officer to verify all financial information is correct. The signing officer is also responsible for all internal controls that enforce accurate findings to be reported (Sarbanes-Oxley Act Section 302, 2003). The Act also led to additional costs in enforcing the regulation. Expenses increased for annual audits, which were performed by third party accounting firms. This, in turn, held the accounting firms liable for any further discrepancies (Slaughter, n.d.). Internal control software was also purchased to keep track of and review internal performance. These costs, although they were high, were nothing compared to the penalties the companies would have to pay if they were not in compliance with the law. The SOX Act also declared that the Chief Executive Officer and the Chief Financial Officer would ultimately be held accountable for any misinformation the company provided. Fines or imprisonment of five years or more would be sentenced to offenders if they “altered, destroyed, mutilated, concealed, falsified records, documents or tangible objects with the intent to obstruct, impede, or influence a legal investigation” (Sarbanes-Oxley Act Section 802, 2003).
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