Regulatory Compliance and Governance

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Business Finance


Scenario: The Sarbanes-Oxley Act (SOX) has been in effect since 2002 and has cost businesses millions of dollars in personnel and administrative costs. Your company is in the process of "going public," has underwritten its Initial Public Offering (IPO), and filed its registration statement with the Securities Exchange Commission. Your current executive team has asked you to create a plan ensuring SOX compliance is followed once you become a publicly traded company.

Review the pertinent sections of The Sarbanes-Oxley Act (SOX) Act. For purposes of this proposal to the board, only concern yourself with the compliance provisions of SOX (Sections 302, 401, 404, 409, and 802).

Create a maximum 1,050-word proposal to the board outling the compliance project necessary to implement SOX.

Cite a minimum of one reference for the five content areas taken from a business or legal resource. One resource must be from the University Library.

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Explanation & Answer

please find the attached file. i look forward to working with you again. good bye


Regulatory Compliance and Governance




Sarbanes-Oxley (SOX) was developed in the year 2002 due to many scandals from
corporate financials that were reported. The Sarbanes-Oxley Act came into force in 2006
requiring all companies in the United States of America regardless of their sizes to implement
and comply with its provisions. The act requires all companies to provide a comprehensive
report before it stars its operations. Any company that fails to comply with the act faces a penalty
charge of up to 1 million US Dollar and 10 years imprisonment. SOX act is made up of 11
sections but the important section that deals with compliance are; section 302, 404, 401, 409, and
802. However, section 404 has been seen as the difficult section for compliance because of new
accountability standards incorporated to the section. The aim of this proposal is to come up with
a compliance plan that ensures all section of SOX is adhered to.
Compliance section of SOX
Section 302: this section is also known as corporate responsibility for financial report.
The aim of this section is to identify people who will be responsible for financial report within a
company (Edwards, 2013). SOX act under this section recognizes that the CEO and CFO are the
people who are responsible for all financial reports including accuracy, documentation and the
control structure within the comp...

This is great! Exactly what I wanted.


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