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Sarbanes-Oxley News & Developments
Regulators Say Executives Need Not Certify All ReportsNew ruling removes some risk of prosecution under Sarbanes-Oxley for corporate executives.
> > The SEC and the Justice Department concluded that the criminal certification requirements of Sarbanes-Oxley do not apply to current reports on form 6-K or 8-K, or employee benefit-plan reports on form 11-K. Justice Department public-affairs director Mark Corallo said the decision came after considerable review by civil and criminal authorities on the scope of the criminal-certification requirement. Certification questions arose after Congress adopted the Sarbanes-Oxley Act to combat corporate accounting fraud.
Among other things, the bill ordered corporate executives to certify their firms quarterly and annual reports are accurate. Executives who sign reports they know to be false could face criminal prosecution, up to $5 million in fines and 20 years in prison.
Source: Hoovers
Published:2003-10-13
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