GENERAL KNOWLEDGE

Detailed explanation-1: -The Sarbanes-Oxley Act (SOX) revolves around the integrity of corporate financial statements. Senior executives are accountable for their accuracy and for the effectiveness of controls that guarantee this. Independent, external auditors must also review the controls periodically.

Detailed explanation-2: -Auditing under the Sarbanes-Oxley Act Among its many requirements, the Act requires public corporations to hire independent auditors to review their accounting practices and defines the rules of engagement for corporate audit committees and external auditors.

Detailed explanation-3: -The Sarbanes-Oxley Act of 2002 (SOX) is a US federal law administered by the Securities and Exchange Commission (SEC). Among other things, SOX requires publicly traded companies to have proper internal control structures in place to validate that their financial statements reflect their financial results accurately.

Detailed explanation-4: -SOX 302 involves a survey and review of related reporting before top officers certify financial reporting, financial controls and fraud activity. SOX 404 includes processes and procedures for setup as well as risk management through monitoring and measuring to control risks associated with financial reporting.

Detailed explanation-5: -The Sarbanes-Oxley Act requires that the management of public companies assess the effectiveness of the internal control of issuers for financial reporting. Section 404(b) requires a publicly-held company’s auditor to attest to, and report on, management’s assessment of its internal controls.