SARBOX Section 404: Short In Text But Huge In Implementation
Passed in July 2002, The Sarbanes Oxley Act was enacted as a far-reaching, and thorough attempt to stamp out the various incidences of unscrupulous financial reporting performed within the confines of a few, high-profile American public corporations. These breaches of corporate fiscal responsibility led to the demise of more than one corporate giant, most notably Enron and Tyco International, bringing down with them thousands of employees and shareholders. In a nutshell, sarbox compliance is not easy and very time-consuming for all companies affected. But no more than in sarbanes oxley section 404; which although short in text, is large in effect and expense. In this section, companies must develop and implement their methods for reporting and retaining all financially-related information so as to let the investing public have a transparent view of the business’ financial health.
