Before you invest in new technology systems to deliver compliance it?s important to understand how the law applies to you. Sarbanes-Oxley was passed in response to a number of corporate financial scandals; to increase the reliability and accuracy of financial results disclosed by public companies.
While some companies will spend millions of dollars to comply with its regulations in the upcoming year most organizations are focused on two particular sections as their priority:
Section 302 requires principal executive and financial officers of a public company to certify the information included in its quarterly and annual financial reports.
Section 404 requires companies to assess document test and certify their internal controls for business processes across the company. The intent of this section is to ensure that policies processes and systems associated with financial reporting are thorough enough to prevent and detect fraud. Together these sections of the law require executives and external auditors to guarantee not only the content of financial information but also the process by which it was managed. Companies must be able to verify that they?ve put appropriate policies procedures and systems in place to ensure that their financial data is both factual and correct.Compliance and Long-term Value
FileWorks understands the challenge of defining managing and tracking business processes to comply with Section 302 and 404