Paper Topic:

Accounting

Key provisions of the Sarbanes-Oxley Act of 2002

Immediately effective requirement for CEO and CFO to certify annual and quarterly reports , subject to criminal and fines and imprisonment

Prohibits auditing firm that provides auditing services for an issuer ' from performing specified non-audit services and requires Audit Committee approval of non-audit services not expressly forbidden (effective 180 days after the Board becomes operational

Issuer ' is defined to include a company that has securities registered under Section 12 of the Exchange Act , or is required to reports under Section 15 (d ) or has a

pending Securities Act registration statement

3 . Adopts Public Company Audit Committee Standards

Responsible for appointment , compensation and oversight of auditing firm Must preapprove all auditing and non-auditing services to be provided by auditing firm except for de minimus exceptions

Mandatory disclosure of non-auditing services to shareholders

Committee members must be independent . May not (except in capacity of member of the board or any board committee ) accept any consulting advisory or other compensatory fee from the issuer and may not be an affiliated person of the issuer or any subsidiary of the issuer

Auditing firm must report to Audit Committee on specified matters

Must establish procedures for complaints regarding accounting , internal accounting controls and auditing matters and the confidential , anonymous submission by employees of concerns regarding questionable accounting or auditing matters

Must have authority to engage independent advisers

I believe the above provisions hold CEOs , CFO 's and accounting professionals accountable and responsible for their deeds . It will...

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