According to SOX, the management of a US public company will personally be liable for the correctness of the financial reports and the effectiveness of its internal control. Each annual report on Form 10-K must contain a statement of the management’s responsibility to establish and maintain adequate internal controls and procedures for its financial reporting and a […]
Title I: Public company accounting oversight board (“PCAOB”): Definition of the organization and the field of functions of the oversight board over the reporting of the US enlisted companies. Title II: Auditor Independence: Regulations about the auditor’s independence including services not allowed to perform by auditors. Title III: Corporate Responsibility: Explanations and enlargement of the responsibilities of the companies like e.g. regulations about the […]
The Sarbanes-Oxley Act of 2002 (“SOX”) is a sweeping American law adopted in 2002 after the accounting scandals of Enron and WorldCom. Its aim is to make the reporting of companies more transparent and reliable mainly by setting up new accounting, auditing and controlling rules in order to enforce corporate governance. The final goal is to restore the confidence […]
