5 thoughts on “What does sox mean”

  1. Pay content for time limit to check for freenAnswer dear, hello, welcome to use Baidu App. We are Baidu's answer, and I will answer it for you next. I am honored to serve you. I will treat you seriously and carefully. Types and sorting materials. It may take a few minutes. Please wait. thanksnThe SOX audit is the Sagas Act. The Sabas Act is also known as the Sabos Oaksli Act. Oaksley, chairman of the House of Representatives Financial Services, proposed that it was also known as the 2002 Sabos Oxley Act. The bill has made significant amendments to the US "Securities Law 1933" and "1934 Securities Trading Law", and has made many new regulations in corporate governance, accounting occupational supervision, and securities market supervision.

  2. The Sarbanes-Oxley Act (SOX Act)
    SOX Act stipulates:

    ● It is forbidden to provide private loans to directors or executives of our company;

    ● 10 % of the equity changes of 10 % of the company's executives, directors or beneficiaries must be disclosed within two business days;

    ● During the regulatory period of pension planning, the company's directors and senior management management The company's shares that are not held directly or indirectly or other behaviors that benefit from it;

    ● For those who violate the circumstances of securities regulations, the US Securities Regulatory Commission can prohibit them from serving as the company's managers Or directors and so on.

    In the establishment of the responsibility mechanism for senior management personnel of listed companies

    1. Clear account liability for CEO/CFO The information disclosed must be attached to the promise letter from CEO (CEO) and Chief Financial Supervisor (CFO) to ensure the authenticity of the regular information disclosure report submitted. Earlier, the disclosure of regular information of listed companies in the United States did not require CEO/CFO to sign. Therefore, once the financial scandal of its listed company was revealed, its CEO/CFO often broke away from the legal responsibility of the individual; due to strong professionalism, procedures, procedures It is complicated, and it is generally difficult to find direct evidence to prove that the CEO/CFO knows or deliberately disclose false financial information. As a result, the judicial principles of innocence in the United States made regulatory authorities often do not have to do.

    The SOX bill stipulates:

    ● All regular reports of listed companies (including accounting statements prepared by the company in accordance with the company in accordance with 1934) The letter of commitment signed by the financial officer;

    ● The content of the commitment letter includes: to ensure the appropriateness of the accounting statement and information disclosure of the company's regular reports, and to ensure that the accounting statement and information disclosure are all major major major major majority Both the aspects implied the company's operating results and financial status.

    This, even if the regulators cannot find or no longer need to find direct evidence of financial fraud, they can also ask their CEO/CFO to bear legal responsibility.

    2. The company's CEO/CFO himself has the legal responsibility of improper behavior

    Previously, in the financial fraud incident of listed companies that caused major harm, the company CEO/CFO himself himself Facing the threat of personal career reputation (RISK); even if the regulators take various punishment measures, these punishments may also be passed on to the burden of listed companies in various ways, but it is difficult to form an effective deterrent of CEO/CFO himself.

    SOX Act this time directly clarified the legal responsibility faced by the company CEO/CFO, provided a strong legal weapon for regulatory agencies to investigate and deal with financial fraud The incentive mechanism and accountability mechanism have reached a certain balance.

    SOX bill stipulates:

    ● In the company's regular reports, if it is found to be required to reuse the accounting statement due to substantial violations of regulatory regulations, the company’s CEO/CFO should return Without all the bonuses, bonuses received from the company, incentive compensation, and the income of the company's stock from the company within 12 months;

    ● If the company CEO/CFO knows illegal matters in advance, but A commitment letter is still submitted, which can be sentenced to up to 10 years of imprisonment and a fine of 1 million US dollars;

    ● For those who deliberately make false commitments, up to 20 years of imprisonment and a fine of $ 5 million.

    In internal and external checks and balances

    The detonation of the Enron incident is not the audit operation of the regulatory agency, but the information of market investment institutions (mainly hedge funds, etc.) Discover doubts, that is, to clarify a series of issues to the company's management, and to clarify it, and a large number of empty Enron stocks were thrown. Therefore, it can be said that improving information disclosure obligations and strengthening information disclosure are the basic means of supervision of listed companies in various countries.

    But in general, how to make investors get comprehensive, accurate and useful information in order to make correct investment decisions, and to form a supervision of listed companies, it is still a problem. Although the United States is at the forefront of the world in the relevant system of information disclosure of listed companies, the SOX bill still puts forward higher requirements, and it seems to be a bit of a must -have.

    The SOX bill stipulates:

    ● Further shorten the lagging period of the disclosure of financial reports and improve the timelyness. Among them, in the next 3 years, the annual report has been shortened from 90 days to 60 days; the quarterly report has been shortened from 45 days to 35 days. Both the annual report and the quarterly report require the audit of the Certified Public Accountant.

    ● Strengthen the internal control and reporting system of listed companies, and requires the company's annual report to provide a "internal control report" to explain the company's internal control system and its effectiveness of its implementation. Opinions;

    ● Improving the requirements for the availability of the company's information disclosure, including the disclosure of all outside the balance sheet transaction, predictive information of the financial status, the moral rules of the high -level financial personnel, all the reasons The substantial correction and adjustment issued by the Certified Public Accountants, the substantive changes of the company's financial conditions or financial operating conditions in the temporary report.

    The internal independent supervision capabilities

    . Different from listed companies in my country, audit committees have been set up within the US listed company, but no supervisory board is set up. The responsibility of the Audit Committee is to supervise the company's accounting and financial report procedures, as well as auditing the company's financial report. In 2002, a series of financial scandals in the listed company showed that the company's audit committee did not play its due role, and even the same.

    SOX bill stipulates:

    ● In order to ensure independence, the audit committee must be composed of "independent directors". At least one of them should be financial experts; independent directors shall not accept any consultation, consultant fee or other remuneration from the company;

    Supervision of the committee; major matters encountered by the accounting firm during the audit process must report the audit committee in time;

    Handle the work procedures for reporting or complaints, as well as the corresponding monitoring system and response mechanism.

    The measures proposed by the SOX bill can ensure the supervision of accounting, audit and senior officials of the company, and also need to be inspected. However, the professionalism of the accounting audit itself is strong. Even if the audit committee is supervised, it can still leave a certain operating space for the registered accountant.

    This to prevent the interests of the registered accountant

    The chain accounting scandal of listed companies in the United States has trapped the relevant accounting firms. However, not only did the accounting firm with audit responsibility not not fulfilled their duties, and Anda Xin, one of the five major accounting firms, even made a tiger to help Enron destroy evidence.

    In fact, the US Securities Regulatory Commission noticed and started to correct the interests of the interests between the accounting firm and the audited company. For example: If a office serves the same customer for a long time, it may have a complex interest relationship with customers. They will provide non -audit business such as corporate consultation while conducting audit business. The income of not audit business is likely to exceed the audit business.

    The former US Securities Regulatory Commission Chairman Arthur Levitt: The audit and consulting business of all accounting firms must be split. But this proposal was resisted by the five major accounting firms. In response, the SOX Act was awarded a sword of the US Securities and Exchange Commission to strictly restrict the accounting firms that may have conflicts of interest.

    The SOX bill stipulates:

    ● Forbidden accounting firms to provide non -audit business while conducting audit business. Among them, it clearly lists the 8 types of inappropriate businesses and authorized the accounting supervision committee of the US Securities and Futures Commission to prohibit provisions on other types of businesses according to the situation.

    ● Forced the implementation of registered accountants regular rotation. It is stipulated that the accountant of the accounting firm, or the accountant who reviews the audit project, shall not provide audit services for the same company for more than 5 years.

    ● Restricted Certified Public Accountants to work as a review company. The company's current CEO/CFO and other executives, if they have been hired by accounting firms and participated in the company's relevant audit work within one year, the firm may no longer hold the company's audit work.

    ● Implement the registration and filing system for accounting firms. Accounting firms engaged in the audit business of listed companies must register at the Accounting Supervision Commission and update the registration information regularly.

    ● In response to the problem of the audit archives of Anda Credit, the SOX bill also stipulates that registered accountants have the responsibility of the storage audit work. The accounting firm is required to audit the work draft of the listed company for at least 7 years.

    I due to the mandatoryness of this measure, so far, the five major accounting firms have basically completed the spin -off of audit and consulting business. For example, KPMV's consulting business was split into Bibo consultation; Pwa's Yongdao's consulting business was acquired by IBM after spin -off; because of the splitting earlier, the Essen consultation from Andaxin was spared from the Enron incident.

    The accountant industry has changed from self -discipline to supervision

    . In the past, the regulatory and service functions of the American registered accountant industry were concentrated in the United States Registered Accountants Association (AICPA). However, a series of accounting scandals in the securities market have been unprecedentedly questioned that the effectiveness of the registered accountant industry has been unprecedented.

    In fact, the American Certified Public Accountants Association rely on the funding of membership fees to maintain operation. Essence Therefore, it is difficult to prevent scandals relying on the self -discipline of the association.

    SOX bill stipulates:

    ● The US Securities and Exchange Commission (SEC) is required to set up a listed company Accounting Supervision Committee (PCAOB), and the original AICPA's registered accountant industry Regulatory functions are handed over to PCAOB more public functions.

    ● PCAOB is composed of five people and is directly under the jurisdiction of the US Securities Regulatory Commission, but it does not belong to its internal employees. In order to eliminate the influence of the registered accounting firm on it, the operation funding of the committee is no longer borne by the accounting firm, but is replaced by the listed company;

    ● Standards, accounting firms, daily supervision, investigation and punishment rights; inspection and processing of accounting treatment between listed companies and accountants.

    I though the previously made clear in the "1934 Securities Trading Law": the authority for the formulation of the accounting of the listed company belongs to the US Securities Regulatory Commission. However, due to the lack of efficiency, funds, and professional talents of government agencies, and because of the effectiveness of the effectiveness of industry self -discipline, the US Securities Regulatory Commission once gave the agency of the formulation of accounting standards to civil self -discipline agencies. The SOX Act requires the US Securities Regulatory Commission to correct this issue and report to Congress.

    In the objectivity and independence of securities analysts

    In US securities market accounting scandals, in addition to registered accountants, securities companies also play a disgraceful role in it Essence In particular, the internal investment banking department and securities analysts of the securities company colluded with each other, released false analysis reports, manipulated market prices, and mislead investors. After such circumstances were exposed, securities companies were facing a large number of legal proceedings and regulatory authorities.

    SOX bill regulations:

    ● The US Securities Regulatory Commission SEC is required to formulate relevant regulations and rules to avoid securities analysts to recommend shares to investors in their research reports or public occasions in public. At the time of "seeing profit", to improve the objectivity of the research report, to provide investors with more useful and reliable information. The specified contents include: research reports provided by the personnel engaged in investment banking business employed by agents and traders, as well as research reports provided by those who are not directly engaged in investment research; Officials engaged in investment banking business are responsible for the supervision and evaluation of securities analysts; requiring brokers and dealers, as well as those who hire the investment banking business, shall not put forward unfavorable or opposite research on the issuer's securities securities for the issuer's securities securities Conclusion, and because the conclusion affects the relationship between the agent and the dealer and the issuer, the securities analysts are retaliated and threatened. Or the agent and dealers of the dealers shall not publish a research report on the stock or issuer;

    Securities analysts are divided into different working departments such as reviewing, compulsory (Pressure), and supervision to avoid potential prejudices participating in the investment banking business;

    While the dealers were announced, they disclosed the conflict of interests known and well known.

    The SOX bill also noticed the independence of correcting the independence of various interference securities analysts, such as threats and seduces from the company's internal investment banking department.

    It -strengthening criminal punishment

    The account of great losses caused by the accounting scandal of listed companies to investors, people urgently demanded that criminals rope to the law. Therefore, in addition to the CEO/CFO's punishment regulations, the SOX bill also formulated laws and regulations for strict punishment of securities crimes.

    SOX bill stipulates:

    ● Anyone can obtain benefits in the securities market through information fraud or price manipulation. Has been sentenced to imprisonment or fines of less than 10 years;

    ● Extended prosecution period for securities fraud. n
    ● The new regulations will protect the company's report and revenge and retaliate against the reporters. Return and other losses.

    SOX Act is the product of hurriedly introduced, which is related to a specific political background in the United States.

    In the current situation, the measures proposed by the SOX bill have played a role in stabilizing the US stock market. However, it takes a certain amount of time to make investors fully restore confidence and solve the deep level of the securities market, and it is not as simple as formulating several laws and regulations.

    SOX Act is the Sagas-Oxlaylla Act

    , also known as the "2002 Public Company Accounting Reform and Investor Protection Law". In order to correct a series of accounting scandals that broke out after the 2001 peace incident, restore investors' confidence in the stock market, and launch this dead sheep to make up. The bill was signed by US President Bush in July 2002.

    The SOX bill is mainly aimed at the issues exposed in the company's financial scandal, and the relevant chapters of the "Securities Law 1933" and "1934 Securities Trading Law" were repaired.

  3. The SOX audit is the Sagas Act
    Sagas Act, also known as the Sabos Oxli Act. Paul Sarbanes and the Chairman of the Comater on Financial Services, Mike Oxley, jointly proposed that they were also called the 2002 Sabos Oxley Act. The bill has made significant amendments to the US "Securities Law 1933" and "1934 Securities Trading Law", and has made many new regulations in corporate governance, accounting occupational supervision, and securities market supervision.
    The Sabas Act provided compliance requirements for companies listed in the United States, so that listed companies had to consider various risks, including IT risks. Many domestic companies that have been listed in the United States have moved. The most prominent of which is the large investment in people, wealth, and things in major telecommunications operators.
    1. There are methods to work hard to streamline the largest SOX obstacle work: SOX404. For example, only testing internal control, if they fail, may lead to a major penalty financial data misunderstanding. In the long run, you can save time and energy by filtering out this control subset. Establish a process chart of procedures, procedures and organization related activities to know where to place controls to avoid errors. The work in other key areas includes communication, training for SOX necessary conditions, and internal control elements and education.
    2. Review data governance and security protocol. The ongoing projects related to big data in the enterprise, a large number of various types of data entered the database, and the communication with business departments introduced new complexity compliance.
    3. Most SOX -controlled IT organizations use COBIT, iTIL, or other management methods to ensure consistent practices. Looking back on whether the document strategy, the content management of big data and the new corporate concept, and using automatic recording management and archiving tools.
    . All these internal SOX audit preparations are the best practice through compliance management, and it is easier to protect new IT solutions, such as virtual desktop or cloud.
    5. Don't forget the software, as SaaS. Sensitive data often exists outside these third -party SAAS applications, and the illegal data that auditors are modifying. If the organization depends on SaaS suppliers, please confirm that they comply with the data that SAS 70 reports.
    6. The correct auditor makes the whole process more smoothly. Select an experienced company in a specific industry. Choose those more famous companies, unless there is a convincing reason -like making a striking audit expert in a small company, or to another company together. Auditors cannot provide accounting services for your company and will not provide in -depth support for correction measures. In the company's assessment, discuss with auditors, not sales staff and senior staff. Know who is actual audit work.
    7. There is no problem with audit inquiry and auditors. It helps IT organizations to prepare -and even run the internal audit of the Sabos Oaksli Act to avoid common errors.
    8. In most IT organizations, compliance, management and security failure in the same place. This is good news. Because the areas of the problem can be identified and fixed before the audit process.

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