Acc230 2013

The Sarbanes-Oxley Act Section 302 describes the responsibilities of the corporation in regards to their financial statements. According to this section corporations must follow

regulations such as representing true and accurate information on their financial statements and that the reports are reviewed by signing officers. The Sarbanes-Oxley Act Section 302 ensures that financial statements are reliable based on their requirements for financial statements to be reviewed by the signing officer. The Sarbanes-Oxley Act Section 409 states that the corporation must provide the public with information on any financial changes in a form of communication that is easily understandable by the public. This information provides information to the public before it is included on the financial statements at year end for individuals. This ensures that the information provided to the public is also provided on the financial statements. The Sarbanes-Oxley requires that the financial statements of corporations are prepared based on the GAAP and is confirmed by a public accountant that is registered. This ensures that ethical practices are taking place within the corporations and on the financial statements. There are also acts that are prohibited and regulated to ensure the most accurate information. Some of these regulations include regulating codes of ethics for company personnel. Corporations providing loans to their executives and altering financial statements are extremely prohibited.