Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Welcome to the presentation of
Neophyte, AIS , University of Dhaka
Group no:7
presenting
Sarbanes-Oxley Act
19-182 Rabbi - Al - Sifat
19-172 K. Maksuda Hoque Adeeba
19-176 Md.Noman Sarkar
19-179 Nazmul Hauque
19-180 Syeda Fatema -...
Objective – improving the financial reporting
quality , corporate governance & increasing
the responsibility of publically...
 Reforming Auditing & Accounting
procedure
 Oversights responsibility of Directors
 Regulating conflict of interest and...
Emphasizes facts related to groups
Responsibilities lie on these parties
IndepIndep
endeende
ntnt
AuditAudit
orsors
ManaMa...
Independent Auditor
People or group of people assigned with audit responsibility
Instructionsrelatedto
Auditors What to do and what not to do?
Institutions should prohibit their independent
auditors fro...
Senior Management
Group of people entrusted with managerial responsibility
InstructionsForSeniorMgt. What to do and what not to do?
Should adopt a internal code of ethics
confidential complaint mec...
Instructionsforseniormgt. What to do and what not to do?
Section 302 requires the chief executive officer (CEO) and the
ch...
Instructionsforseniormgt. What to do and what not to do?
Internal control act on following categories:
•Effectiveness and ...
Audit Committee
operating committee of a company's board of directors
that is in charge of overseeing financial reporting ...
Instructionsrelatedtoaudit
Committee What to do and what not to do?
The board of directors should have an audit committee...
InstructionsrelatedtoAudit
committee What to do and what not to do?
The audit committee should have a charter that includ...
Now we going to dig deeper into this act:
The act is divided into 11 titles
And here our section wise exploration journey ...
Creation of PCAOB (the Board)
Title-i
Public Company Accounting Oversight Board
Created as a non-profit organization,
the 5 member Board oversees audits
of public companies; it is under the
authority of...
Well Duties are not finished yet
Duties of PCAOB
o Write audit standards
o Register public CPA firms to do audits
o Set Qu...
End of Title I’s explanation
Additional Duties
o Investigate and discipline
o Set Continuing Professional Education
requir...
It ranges from
section 201-209.
Lt’s have a look over them!
Bookkeeping
Systems design
Valuation services
Actuarial services
Internal audit
Management functions
Auditors can’t ...
The audit committee must
preapprove all services provided by
the auditor.
The lead (or coordinating) audit
partner and the...
The public accounting firm must report to
the audit committee:
All critical accounting policies and
practices used by the...
Report on conforming amendments
to the SEC Act
Can’t do audit if CEO, CFO from their
firm, 1 year wait period
Title - ii
S...
» Ranges from
Section 301- 308
» Focuses on
CORPORATE
RESPONSIBILITY
Title - iii
»Establishes minimum
independence standards for audit
committees
»Establishes procedures for
addressing complaints by the
...
» CEOs and CFOs must certify in any
periodic report the truthfulness and
accurateness of that report
» Under certain condi...
Due to enhanced Disclosures Now we do have
CLOSER LOOK!!!!!
Title - iv
Enhanced Financial Disclosures
Ranges from sec 401-...
1. off-balance-sheet transactions
2. pro-forma figures and stock transactions of corporate
officers
3. assuring the accura...
Title V-Xi Summery
OTHER TITLES
A short overview
OTHERTITLEOVERVIEW Analyst conflicts of interest (title v)
includes measures designed to help restore investor
confidence ...
OTHERTITLEOVERVIEW Studies and reports (title vii)
SEC to perform various studies including the effects of
consolidation o...
OTHERTITLEOVERVIEW White Collar Crime Penalty Enhancement
(title ix)
This section advances criminal penalties for fraudule...
OTHERTITLEOVERVIEW Analyst conflicts of interest (title xi)
Sec 1001-1004
Discusses fines, consequences, and sentencing fo...
Sarbanes-Oxley Act
Upcoming SlideShare
Loading in …5
×

Sarbanes-Oxley Act

My work on Sarbanes-Oxley Act

  • Login to see the comments

Sarbanes-Oxley Act

  1. 1. Welcome to the presentation of Neophyte, AIS , University of Dhaka Group no:7 presenting Sarbanes-Oxley Act
  2. 2. 19-182 Rabbi - Al - Sifat 19-172 K. Maksuda Hoque Adeeba 19-176 Md.Noman Sarkar 19-179 Nazmul Hauque 19-180 Syeda Fatema - Tuj - Juma 19-255 Md. Hammadur Rahman Group List.
  3. 3. Objective – improving the financial reporting quality , corporate governance & increasing the responsibility of publically traded company to protect the interest of investors Sox was enacted 30th June 2002 . A brief History
  4. 4.  Reforming Auditing & Accounting procedure  Oversights responsibility of Directors  Regulating conflict of interest and insider treading of directors and officers  Conflict of interest of stock analyst  Disclosure requirement for anything that may influence company’s financial health  Criminalizing inappropriate conduct regarding document handling , disclosure & interference with investigation  Personal certification of f/s results income tax documents by CEO Nutshell
  5. 5. Emphasizes facts related to groups Responsibilities lie on these parties IndepIndep endeende ntnt AuditAudit orsors ManaMana gemegeme ntnt AuditAudit commcomm itteesittees
  6. 6. Independent Auditor People or group of people assigned with audit responsibility
  7. 7. Instructionsrelatedto Auditors What to do and what not to do? Institutions should prohibit their independent auditors from providing non-audit services The lead audit partner should be rotated every five years, with a timeout of two years. Source: NACUBO report
  8. 8. Senior Management Group of people entrusted with managerial responsibility
  9. 9. InstructionsForSeniorMgt. What to do and what not to do? Should adopt a internal code of ethics confidential complaint mechanism should be made available to employees to communicate concerns about accounting, auditing, or internal control processes. Should encourage Whistle Blowing
  10. 10. Instructionsforseniormgt. What to do and what not to do? Section 302 requires the chief executive officer (CEO) and the chief financial officer (CFO) to assert that the financial statements have no material misstatements or omissions and that they have evaluated “disclosure controls and procedures.” Sec: 302
  11. 11. Instructionsforseniormgt. What to do and what not to do? Internal control act on following categories: •Effectiveness and efficiency of operations •Reliability of financial reporting •Compliance with applicable laws and regulations •Safeguarding of assets “document and evaluate internal controls over a planned time period. .” Sec: 404
  12. 12. Audit Committee operating committee of a company's board of directors that is in charge of overseeing financial reporting and disclosure
  13. 13. Instructionsrelatedtoaudit Committee What to do and what not to do? The board of directors should have an audit committee or its equivalent. The audit committee should exercise direct control over the external auditors. Members of the audit committee must be independent, and management should not be voting members of the audit committee.
  14. 14. InstructionsrelatedtoAudit committee What to do and what not to do? The audit committee should have a charter that includes role and authority language. At least one financial expert should be included on the audit committee.
  15. 15. Now we going to dig deeper into this act: The act is divided into 11 titles And here our section wise exploration journey begins Interpretation of SOX section wise
  16. 16. Creation of PCAOB (the Board) Title-i Public Company Accounting Oversight Board
  17. 17. Created as a non-profit organization, the 5 member Board oversees audits of public companies; it is under the authority of the SEC what they cactually do??? Well we are going to define that Overview
  18. 18. Well Duties are not finished yet Duties of PCAOB o Write audit standards o Register public CPA firms to do audits o Set Quality Control standards for audits o Do peer reviews of CPA firms – at least every three years
  19. 19. End of Title I’s explanation Additional Duties o Investigate and discipline o Set Continuing Professional Education requirements for auditors o Review company disclosures and financial statements at least every three years
  20. 20. It ranges from section 201-209. Lt’s have a look over them!
  21. 21. Bookkeeping Systems design Valuation services Actuarial services Internal audit Management functions Auditors can’t do! : What is said in Section 201?
  22. 22. The audit committee must preapprove all services provided by the auditor. The lead (or coordinating) audit partner and the reviewing audit partner of the public accounting firm must rotate off the audit every five years. Title - ii Section 202 Section 203
  23. 23. The public accounting firm must report to the audit committee: All critical accounting policies and practices used by the client All alternative treatments of financial information and the treatment preferred by the public accounting firm Other material written communication between the public accounting firm and management Title - ii Section 204
  24. 24. Report on conforming amendments to the SEC Act Can’t do audit if CEO, CFO from their firm, 1 year wait period Title - ii Section 205 Section 206 Section 207 The GAO will do a study on the potential effects of mandatory rotation of public accounting firms.
  25. 25. » Ranges from Section 301- 308 » Focuses on CORPORATE RESPONSIBILITY Title - iii
  26. 26. »Establishes minimum independence standards for audit committees »Establishes procedures for addressing complaints by the issuer regarding accounting, internal control, etc. (this lays the foundation for anonymous whistleblowing) SUMMERY OF TITLE iii
  27. 27. » CEOs and CFOs must certify in any periodic report the truthfulness and accurateness of that report » Under certain conditions of re-statement of financials due to material non- compliance, CEOs and CFOs will be required to forfeit certain bonuses and profits paid to them as a result of material mis-information TITLE iii Continued
  28. 28. Due to enhanced Disclosures Now we do have CLOSER LOOK!!!!! Title - iv Enhanced Financial Disclosures Ranges from sec 401-409
  29. 29. 1. off-balance-sheet transactions 2. pro-forma figures and stock transactions of corporate officers 3. assuring the accuracy of financial reports and disclosures 4. timely reporting of material changes in financial condition and specific enhanced reviews by the SEC or its agents of corporate reports. Required Disclosures !
  30. 30. Title V-Xi Summery OTHER TITLES A short overview
  31. 31. OTHERTITLEOVERVIEW Analyst conflicts of interest (title v) includes measures designed to help restore investor confidence in the reporting of securities analysts. It defines the codes of conduct for securities analysts and requires disclosure of knowable conflicts of interest Commission Resources and Authority (title vi) defines the SEC's authority to censure or bar securities professionals from practice and defines conditions under which a person can be barred from practicing as a broker, advisor, or dealer
  32. 32. OTHERTITLEOVERVIEW Studies and reports (title vii) SEC to perform various studies including the effects of consolidation of public accounting firms, the role of credit rating agencies in the operation of securities markets, securities violations, and enforcement actions Corporate and Criminal Fraud Accountability (title vii) describes specific criminal penalties for manipulation, destruction or alteration of financial records or other interference with investigations, while providing certain protections for whistle- blowers
  33. 33. OTHERTITLEOVERVIEW White Collar Crime Penalty Enhancement (title ix) This section advances criminal penalties for fraudulent acts Corporate Tax returns (title x) states that the Chief Executive Officer should sign the company tax return
  34. 34. OTHERTITLEOVERVIEW Analyst conflicts of interest (title xi) Sec 1001-1004 Discusses fines, consequences, and sentencing for noncompliance Sec1005 Gives the SEC the authority to prohibit anyone convicted of securities fraud from being an officer or director of any publicly traded company

×