Question

Briefly describe the requirements of the following sections of the Sarbanes-Oxley Act as they relate to public companies:

1. Section 302

2. Section 404

Answer 1

The SOX Act was designed to increase transparency in corporate governance as well as financial statements, it also focues on implementation of sound internal control system

Section 302: Corporate responsibility for financial reports

This sections lays down that CEO &. CFO personally certify that all records are complete and accurate and further that they personally take responsibility of all internal control and they have reviewed the same in past 90 days.

Section 404: Management Assessment of Internal Controls

This lays down the requirement for establishing and monitoring Internal Control and to conduct the audit of the same, and findings are backed to SEC