Significant changes have occurred in the responsibility of management for financial reporting under the Sarbanes-Oxley Act. Financial reports must be personally certified by top managers under the act. Obstructing justice, securities fraud, mail fraud, and wire fraud are all classes of crimes that are punishable under Sarbanes-Oxley.
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: how does sarbanes-oxley act of 2012 affect information security management - Related Questions
What does SOX stand for in security?
Sarbanes Oxley - What does the term w of Sarbanes Oxley – What does SOX mean? A U.S. law known by the acronym SOX or Sarbox, otherwise known as Sarbanes-Oxley Act of 2002. Investors are protected against fraudulent accounting by corporations under this law.
How does SOX affect private companies?
Even private companies must comply with certain SOX provisions. In the event that they are violated, there may be severe penalties, such as non-discharge of certain debts in bankruptcy, penalties, and even imprisonment for up to 20 years.
What did the Sarbanes-Oxley Act do?
Congressional legislation called the Sarbanes-Oxley Act of 2002 was enacted because corporations were being harmed by widespread fraud. set new rules governing corporations, such as requiring auditors to maintain high ethical standards to reduce conflicts of interest, as well as transferring responsibility for the accuracy of financial reports to board members.
Why Sarbanes-Oxley Act SOX is important?
A federal law passed in 2002 called Sarbanes-Oxley is a law that specifies how public companies are audited. A new law was enacted in an effort to protect shareholders, employees, and the public from financial fraud.