Penalties and Requirements under Sarbanes Oxley Act
Penalties and Requirements under Title VIII of the Act
It is a felony to knowingly destroy or create documents to “impede, obstruct, or influence” any existing or contemplated federal investigation.
Auditors are required to maintain “all audit or review work papers” for five years.
A statute of limitations on securities fraud claims is extended to five years from the fraud and two years after the fraud was discovered, from three years and one year, respectively.
Employees of issuers and accounting firms are extended “whistleblower protection” that would prohibit the employer from taking certain actions against employees who lawfully disclose private employer information to, among others, parties in a judicial proceeding involving a fraud claim. Whistleblowers are also granted a remedy of special damages and attorney’s fees.
Penalties and Requirements under Title IX of the Act
Maximum penalty for mail and wire fraud increased from five to ten years.
A CEO and CFO must certify financial statements filed with the SEC. A certification must state that the financial statements and disclosures fully comply with the provisions of the Securities Exchange Act and that they fairly present, in all material respects, the operations and . nancial condition of the issuer. Maximum penalties for willful and knowing violations of this section are a . ne of not more than $5 million and imprisonment of up to 20 years.
IT Control & Audit, Sandra Senft, Frederick Gallegos 2008
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