Monday, December 20, 2004

Sarbanes-Oxley Act Could Punish Executives

Thanks to a two-year-old corporate responsibility law, regulators and directors have powerful new tools at their disposal if their investigations uncover misconduct at Fannie Mae.

Congress passed the Sarbanes-Oxley Act of 2002 after top executives at scandal-ridden companies, including Enron Corp. and WorldCom Inc., said they were unfamiliar with the details of company accounting practices that resulted in devastating losses by investors.

The law requires chief executives and financial officers to certify the accuracy of corporate financial statements.

Officials who "willfully" sign off on faulty financial reports knowing they are incorrect could be sentenced to 20 years in prison and fined $5 million.

Sarbanes-Oxley Act Could Punish Executives

Send to a friend:

0 Comments:

Post a Comment

<< Home

Previous articles

PCAOB Said to Be Investigating KPMG Audit of Fanni...

Reassuring Answers (washingtonpost.com)

Delistings soared in '03, study says

BearingPoint Warns of Continued Turmoil, Acknowled...

White Paper: Ensure business controls and regulato...

Balance Sheet: The limits of expertise

Nicolet decides to privatize

SEC looks again at Sarbanes-Oxley rules

SEC lauded for Sarbanes-Oxley review

Shortage of Accountants Leads to New Recruiting St...