The Sarbanes-Oxley , 2002 contains following provisions which determines more adequacy of control over financial statements. One of the core elements of Sarbanes-Oxley was to clearly define and place responsibility for a company’s financial statements with its cchief executive officer (CEO) and chief financial officer (CFO), SOX mandated that these executives certify the following items (among others) for each annual and quarterly report: • They have reviewed the report • Based on their knowledge, the financial information included in the report is fairly presented • Based on their knowledge, the report does not contain any untrue statement of material fact or omit a material fact that would make the financial statements misleading • They acknowledge their responsibility for establishing and maintaining internal controls over financial reporting and other disclosures • They have evaluated the effectiveness of these controls, presented their conclusion as to effectiveness and disclosed any material changes in the company’s controls. SOX required companies to provide audit committees with the resources and authority to engage independent counsel and advisers to help them carry out their duties. SOX also required audit committees to establish procedures for receiving whistleblower complaints regarding accounting, auditing and internal control irregularities and to provide for the confidential and anonymous treatment of employee concerns regarding such matters. In addition, SOX enhanced the external auditor’s required communications with the audit committee to include the following: • A discussion of all critical accounting policies and practices used by the company • All alternative accounting treatments that have been discussed with management, the ramifications of the use of alternative disclosures and accounting treatments and the accounting treatment preferred by the audit firm • Other material written communications between the auditor and management. Conclusion: I think the provisions of Sarbanes oxely Act are adequate, We should also focus on the practicality of ever changing corporote world . A recent report showed that chances of reinstatement of financial statements are 46% higher for the companies who do follow sarbanes- oxley act. See this provision of Sarbanes oxely act. Officers and directors are prohibited from trading during pension “blackout” periods: The Act prohibits corporate officers and directors from trading company securities during a pension fund “blackout” period . It was never there . It was aptly introduced by Sarbanes-oxely Act. Solution The Sarbanes-Oxley , 2002 contains following provisions which determines more adequacy of control over financial statements. One of the core elements of Sarbanes-Oxley was to clearly define and place responsibility for a company’s financial statements with its cchief executive officer (CEO) and chief financial officer (CFO), SOX mandated that these executives certify the following it.

1. The Sarbanes-Oxley , 2002 contains following provisions which determines more adequacy of
control over financial statements.
One of the core elements of Sarbanes-Oxley was to clearly define and place responsibility for a
company’s financial statements with its cchief executive officer (CEO) and chief financial
officer (CFO), SOX mandated that these executives certify the following items (among others)
for each annual and quarterly report:
• They have reviewed the report
• Based on their knowledge, the financial information included in the report is fairly presented
• Based on their knowledge, the report does not contain any untrue statement of material fact or
omit a material fact that would make the financial statements misleading
• They acknowledge their responsibility for establishing and maintaining internal controls over
financial reporting and other disclosures
• They have evaluated the effectiveness of these controls, presented their conclusion as to
effectiveness and disclosed any material changes in the company’s controls.
SOX required companies to provide audit committees with the resources and authority to engage
independent counsel and advisers to help them carry out their duties. SOX also required audit
committees to establish procedures for receiving whistleblower complaints regarding accounting,
auditing and internal control irregularities and to provide for the confidential and anonymous
treatment of employee concerns regarding such matters. In addition, SOX enhanced the external
auditor’s required communications with the audit committee to include the following:
• A discussion of all critical accounting policies and practices used by the company
• All alternative accounting treatments that have been discussed with management, the
ramifications of the use of alternative disclosures and accounting treatments and the accounting
treatment preferred by the audit firm
• Other material written communications between the auditor and management.
Conclusion: I think the provisions of Sarbanes oxely Act are adequate, We should also focus on
the practicality of ever changing corporote world . A recent report showed that chances of
reinstatement of financial statements are 46% higher for the companies who do follow sarbanes-
oxley act.
See this provision of Sarbanes oxely act.
Officers and directors are prohibited from trading during pension “blackout” periods: The Act
prohibits corporate officers and directors from trading company securities during a pension fund
“blackout” period .
It was never there . It was aptly introduced by Sarbanes-oxely Act.

2. Solution
The Sarbanes-Oxley , 2002 contains following provisions which determines more adequacy of
control over financial statements.
One of the core elements of Sarbanes-Oxley was to clearly define and place responsibility for a
company’s financial statements with its cchief executive officer (CEO) and chief financial
officer (CFO), SOX mandated that these executives certify the following items (among others)
for each annual and quarterly report:
• They have reviewed the report
• Based on their knowledge, the financial information included in the report is fairly presented
• Based on their knowledge, the report does not contain any untrue statement of material fact or
omit a material fact that would make the financial statements misleading
• They acknowledge their responsibility for establishing and maintaining internal controls over
financial reporting and other disclosures
• They have evaluated the effectiveness of these controls, presented their conclusion as to
effectiveness and disclosed any material changes in the company’s controls.
SOX required companies to provide audit committees with the resources and authority to engage
independent counsel and advisers to help them carry out their duties. SOX also required audit
committees to establish procedures for receiving whistleblower complaints regarding accounting,
auditing and internal control irregularities and to provide for the confidential and anonymous
treatment of employee concerns regarding such matters. In addition, SOX enhanced the external
auditor’s required communications with the audit committee to include the following:
• A discussion of all critical accounting policies and practices used by the company
• All alternative accounting treatments that have been discussed with management, the
ramifications of the use of alternative disclosures and accounting treatments and the accounting
treatment preferred by the audit firm
• Other material written communications between the auditor and management.
Conclusion: I think the provisions of Sarbanes oxely Act are adequate, We should also focus on
the practicality of ever changing corporote world . A recent report showed that chances of
reinstatement of financial statements are 46% higher for the companies who do follow sarbanes-
oxley act.
See this provision of Sarbanes oxely act.
Officers and directors are prohibited from trading during pension “blackout” periods: The Act
prohibits corporate officers and directors from trading company securities during a pension fund
“blackout” period .
It was never there . It was aptly introduced by Sarbanes-oxely Act.