Corporate culture is, for the most part, profit driven. With the advent of Sarbanes-Oxley, how results are achieved and how they are communicated becomes far more important.
The Chief Executive Officer (CEO) and Chief Financial Officer (CFO) are responsible for certifying that financial information and reports are accurate and truthful, and that the processes and procedures that generated these reports are effective and dependable.
Since management must certify that financial statements are accurate, all professionals within the organization will have to observe higher professional standards. Goals and expectations must be reasonable. Budgets and estimates must be fundamentally sound. Corporate communication must be open without concealing material information.
Implementing best practice approaches and due diligence is a rigorous undertaking. But these processes provide a reliable means for both management and investors to have confidence that the financial information being reported is accurate.
Back to: Key Provisions Sarbanes-Oxley Forward to: Sarbanes-Oxley and the CFO