A1 How To

Whether you are a US company, or just a company with links back to the US, you may be required to know about the Sarbanes Oxley act. If you’re an American company and haven’t heard of it previously, you have already learned something about the act. It’s a law in the US.

The Sarbanes Oxley act is an act that was signed into US law in 2002. It was designed to put a stop to the things that went on it Enron and Worldcom. Both of these companies announced that they had been running on fraudulent deals for several years. At that time, companies didn’t need to report their finance records to the government.

What it does is it makes sure that the companies are run safely and lawfully, if it’s found that they are not, the owners are help resonsible for any wrong doing.

The act means that Chief Executive Officers and Chief Financial Officers are required to sign the records for the business. They have to sign the books to gaurentee they are not misrepresented and they match the earnings of the company.

If the act is not abided by or the records are found to be false, the Chief Officers can be punished by the government.

Like what I said towards the top of the post, you might not be required to abide by the act. You only need to abide by the act if your company is based in either the US, UK or Europe and they have listings on the US stock exchange. You would also have to abide by the act if the company is based in the UK or Europe by it’s a subsidiary of an US company.

Some companies find the Sarbanes Oxley act to be a real pain. Because companies are required to release all their transactions, even the sale and purchase of new assets. This is where people have the problem because all the company’s fixed assets must before recorded.

The process of fixed asset accounting can be expensive and take time. If you try and do the job within your company, it can often take several months and result in incorrect listings. The easiest way to ensure you have recorded all your assets is by outsourcing the process to an asset management company.

Unfortunately, it’s definately not a cheap act to abide by. However, many asset management companies do offer services that they can add to your assets to make it easier and cheaper to audit in the future. Many of the companies also offer Sarbanes Oxley compliance software which will make the job even easier for you.

Hopefully that helped you understand what the Sarbanes Oxley act is and what you have to do to abide by it. You probably won’t like having to do it, but you can blame Enron and Worldcom.

• Incorporate My Business Why?
Incorporating your businesses is the process of converting a business into a corporation. Incorporating your business means that your business...
• Computer Repairs Nyc
Connected Computers, LLC is a team of professional consultants and technicians providing affordable IT solutions to the heart of New...
• Are Luxury Holidays Too Expensive?
With money being hard to keep to ourselves, with bills and everything, is it possible for us to still embark...
• Make Money Online
making money If you own an online store you have two options when it comes to the goods you sell:...
• The Main Discussion About 1st Time Meeting After Chatting Online
Technology has always been there to make lives of people easier. In fact, thanks to technology the world of emotions...