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Regulatory Compliance Rules & Acts

Sarbanes-Oxley

Country:

USA

Applies To:

All Public Companies

Regulatory Body:

SEC/FINRA

Summary:

Section 802(a) Prohibits knowingly altering, destroying, mutilating, concealing, covering up, falsifying, or making a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States.

Section 802(a)(1) Requires that auditors of covered entities maintain all audit or review workpapers for a period of 5 years from the end of the fiscal period in which the audit or review was concluded.

Penalties:

Fines to $5M and imprisonment up to 20 years for violating Section 802(a) Fines and imprisonment for periods up to 10 years for violating Section 802(a)(1)

KOMpliance and Sarbanes-Oxley Act Requirements

Section 302: Corporate Responsibility for Financial Reports	This section requires CFOs and CEOs to personally certify the appropriateness of the financial statements and disclosures contained in the periodic report, and that those financial statements and disclosures fairly present, in all material respects, the operations and financial condition of the issuer.	Once the CEO or the CFO sign and date the record, it can be stored using KOMpliance on an unalterable media for legal admissibility. Data authenticity and integrity is ensured and the signer cannot readily repudiate the signed record as not genuine, as data stored to the KOMworx Volume (email, files, documents, etc.) cannot be changed for the entire duration of the file retention period. KOMworx can be used to implement several different models of archiving data: WORM: Files are archived on regulatory compliant Write-Once, Read-Many (WORM) optical media e-WORM: Files are archived, protected and preserved on hard disk (electronic WORM) e-WORM++: Files are stored on both hard disk and regulatory compliant optical storage media. This model provides the ideal strategy to archive files and maintain multiple copies by combining the benefits of both technologies to deliver hard disk performance with optical permanence, agility and reliability.
Section 404: Management Assessment of Internal Controls	Section 404 of the Act requires public companies to state in their annual reports whether there are adequate controls over the financial reporting processes. Section 404 also requires auditors of those public companies to attest to, and report on, the assessment made by management.	KOMpliance helps facilitate adequate controls over the financial reporting process by tracking any and all changes made to financial records, including who created the file, when was it created, and who has accessed it since it was created. Any changes to the file are date and time stamped. A log is created and maintained with a history of the changes. A log can be quickly accessed for creating an audit report, which can be produced in paper or electronic form.
Section 409: Real Time Disclosure	Issuers must disclose information on material changes in the financial condition or operations of the issuer on a rapid and current basis.	KOMworx helps facilitate audit reports to track material changes in the financial condition or operations of an organization. As in Section 404 above, KOMworx tracks any and all changes made to financial records and maintains a date and time stamp for those changes. Logs can be quickly accessed for creating an audit report.
Section 802: Criminal Penalties for Altering Documents	“Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation……. shall be fined under this title, imprisoned not more than 20 years, or both.”	Once the CEO or the CFO sign and date the record, it can be stored using KOMpliance on an unalterable media for legal admissibility. Data authenticity and integrity is ensured and the signer cannot readily repudiate the signed record as not genuine, as data stored to the KOMworx Volume (email, files, documents, etc.) cannot be changed for the entire duration of the file retention period. KOMworx can be used to implement several different models of archiving data: WORM: Files are archived on regulatory compliant Write-Once, Read-Many (WORM) optical media e-WORM: Files are archived, protected and preserved on hard disk (electronic WORM) e-WORM++: Files are stored on both hard disk and regulatory compliant optical storage media. This model provides the ideal strategy to archive files and maintain multiple copies by combining the benefits of both technologies to deliver hard disk performance with optical permanence, agility and reliability.

Additional Information:

http://www.sox-online.com/act_section_802.html