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Sarbanes-Oxley News & Developments
Even If You Are Private - What You Should Know About SOXWhat initially only seemed to affect public companies is now having far reaching implications on corporate America as a whole.
> > In the wake of well-publicized corporate scandals involving management self-dealing and accounting fraud, in July 2002 President Bush signed into law the Sarbanes-Oxley Act(SOX)of 2002. SOX impacts everything from the role of auditors to public reporting of stock trades by management, from committee independence to reporting of off-balance sheet transactions, and from officer loans to employee whistleblowing.
SOX has created new crimes: retaliation against whistleblowers; destruction of documents; fraudulently influencing company auditors; and a new substantive securities fraud offense.
SOX may result in increased scrutiny of a private company being considered for acquisition by a public company.
A private company will become subject to SOX upon filing a registration statement with the SEC in anticipation of an IPO.
Source: CFO article
Published:2003-07-11
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