SarbanesOxley Paper Essay Example | Topics and Well Written Essays - 500 words

SarbanesOxley Paper - Essay Example Furthermore, the law covers significant corporate issues as follows ("Sarbanes-Oxley Act of 2002 - SOX, Investopedia" n.d.): In view of the provisions of the SOX, companies covered are required to submit report on their internal controls to ensure that they are compliant with the law in general. As per Section 404 of the Act, Chief Executive Officers and Chief Financial Officers must file Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the forms of which are published by the Securities and Exchange Commission. ("Sarbanes-Oxley Act of 2002 - SOX," n.d.) Moreover, the said section requires management to document and evaluate the effectiveness of their internal controls over financial reporting. As part of the reports, companies must provide verification that their internal controls have been appropriately assessed. Such provisions present new challenges to businesses, particularly in terms of documentation of control procedures related to information technology.