What is Sarbanes-Oxley?
During the financial scandal of the early 2000s, stockholders, creditors and other investors lost billions of dollars. As a result, the U.S. Congress passed the Sarbanes-Oxley Act of 2002. This act, often referred to as Sarbanes Oxley, is one of the most important laws affecting U.S Companies in the recent history. The purpose of Sarbanes-Oxley is to maintain public confidence and trust in the financial reporting of companies.
Sarbanes-Oxley applies only to companies whose stock is traded on public exchanges, referred to as publicly held companies. However, Sarbanes-Oxley highlighted the importance of assessing the financial controls and reporting of all companies. As a result, companies of all sizes have been influenced by Sarbanes-Oxley.
Sarbanes-Oxley emphasizes the importance of effective internal control. Internal control is defined as the procedures and processes used by a company to:
Fontenot & Associates Solutions recommends establishing company policy and procedures to support with maintaining effective internal controls whether you are a private or publicly held business.
Success is how high you bounce after you hit bottom. – General George Patton
Hello, I'm Terra the Founder and Marketing Director of Fontenot & Associates Solutions. Thank you for joining my Accounting world. Our blog's purpose is to teach with the determination of closing industry and accounting process gaps that knowingly exist with our uniquely designed detailed procedures and trainings.
My mission is to offer the best accounting results for all companies seeking to close their process gaps with actual solutions. With my Bachelors and Masters Degree in Accounting, I strive for continuous development and professional growth in this profession. My professional career has been in the Oil & Gas industry for nearly the past 10 years but my business focus is to support and train accounting professionals in all industries.