The Sarbanes-Oxley Act (SOX) was enacted in 2002 in response to financial scandals, such as Enron and WorldCom, that resulted in significant losses for investors. The act was designed to restore confidence in the financial reporting of public companies, and Global CPA is well-versed in providing services related to SOX compliance.
The act requires senior executives to take individual responsibility for the accuracy and completeness of corporate financial reports. Global CPA can help companies to understand and meet these requirements, and to design effective internal controls that ensure the accuracy and validity of financial reports. We work closely with our clients' audit committees and external auditors to ensure compliance with the regulations and to provide assurance to stakeholders.
Global CPA can also help companies to comply with Section 302 of the act, which requires that the company's principal officers, including the CEO and CFO, certify and approve the integrity of their company's financial reports on a quarterly basis. We can assist with the preparation of these certifications and ensure that the necessary internal controls are in place to support them.
The act also requires internal controls for assuring the accuracy of financial reports and disclosures, and mandates both audits and reports on those controls. Global CPA can help companies to design and implement effective internal controls that comply with the regulations and ensure the accuracy of financial reports. We can also provide audit services and reports on those controls, providing assurance to stakeholders and demonstrating compliance with the regulations.
SOX also requires timely reporting of material changes in financial condition and specific enhanced reviews by the SEC or its agents of corporate reports. Global CPA can assist companies in meeting these reporting requirements, and can provide the necessary support and advice to ensure compliance with the regulations.
Finally, the act requires new reports from management and auditors about whether adequate internal control over financial reporting is in place. This information is important to investors, who place a much higher premium on the stock price of companies that have effective internal control over financial reporting. Global CPA can help companies to design and implement effective internal controls, and can provide the necessary reports to ensure compliance with the regulations and to provide assurance to stakeholders.
In summary, SOX compliance is a complex and demanding area, but one in which Global CPA has significant expertise. We can help companies to understand the regulations, to design effective internal controls, and to comply with the reporting requirements. Our services provide assurance to stakeholders and help to restore confidence in the financial reporting of public companies.