How is the Act intended to address the problem?
Sarbanes-Oxley aims to enhance corporate governance through measures that will strengthen internal checks and balances and, ultimately, strengthen corporate accountability. The Act is intended to address the problems that generated it by instituting various new levels of control and sign-off designed to ensure that financial reporting exercises full disclosure and corporate governance is transacted with full transparency. Generally speaking, there are three areas of special concern to those involved in internal and IT audit and control. Section 302 requires the CEO and CFO to personally sign off on the appropriateness of the firm’s financial statement. Section 404 covers attestation of financial reporting controls. And, section 409 calls for more frequent reporting.
