The Sarbanes-Oxley act of 2002 was a piece of legislation that affects how any accounting firm does business. Auditors and accountants pay close attention to the Sarbanes-Oxley Act or SOX ACT for short, when advising any business, whether it's a mega-firm or a small administrative agency. The provisions of Sarbanes-Oxley were meant to deal with some of the scandalous procedures that went on in the accounting world prior to its passage.

Today, we have a whole new set of problems with the way America does business, but Sarbanes-Oxley continues to be relevant, and professionals train for compliance at every level of the industry. You can get Sarbanes-Oxley training over the Internet for becoming savvy in compliance with these important regulations. Those looking for Sarbanes-Oxley Act training can use:

1. Tested Sarbanes-Oxley Act compliance information and lessons from large associations and trade groups.

2. Online Sarbanes-Oxley training from schools offering programs to truly educate students on SOX provisions.

3. Specialized Sarbanes-Oxley lessons for those who may be only somewhat involved in dealing with ramifications of the legislation.

Action Steps
The best contacts and resources to help you get it done

Get Sarbanes-Oxley Act training from associations and institutes

Often, the big groups of management professionals who are at work daily in accounting can be a real source of information about training for Sarbanes-Oxley Act, and programs hosted by these groups can be a very effective solution for those who want to understand how SOX works in the marketplace and why it's important to comply, as well as best management practices that the pros know.

I recommend: The American Management Association's One-day Sarbanes-Oxley Act training workshop is one option for quickly getting competent in this important are of finance. The International Institute of Management (IIM) offers SOX courses conveniently set in Las Vegas to allow for multi-purpose trips to the West.

Find remote and Internet Sarbanes-Oxley Act training options

For students who don't have the money or time, or companies that need a quicker and easier solution, online firms offer some courses that can be done over the web. Just like anything else, Sarbanes-Oxley compliance can be taught online if the students are capable.

I recommend: Take a look at the online Sarbanes-Oxley Act offerings from Remote Course. Get more Sarbanes-Oxley information and training options from the New York Institute of Finance, where courses offer help on dealing with Sarbanes-Oxley requirements.

Get specialized Sarbanes-Oxley consulting or ethics training

Other sites offer training that is based on specific industry experience about how best to work with a client, and not just instruct. Consultants who have provided direction to firms can adapt that into Sarbanes-Oxley training that can be particularly effective.

I recommend: Sirco Consultants offers participatory courses for those who need a lot of information on the Sarbanes-Oxley Act: calling their programs Financial training for Non-Financial People. Or, Sarbanes-Oxley training can be integrated into ethics training (because a lot of the SOX standard has to do with enforcing a particular business ethic for the common good) such as the courses at the Global Ethics University.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Before paying for training, examine particular needs. You'll only need as much training as it takes for staff to get a working knowledge. Adapt the solution to the need for getting the most out of your dollar on Sarbanes-Oxley training.

The federal Sarbanes Oxley Act was established in 2002 in the wake of the corporate financial scandals at Enron and other large companies. The SOX act requires companies to set up standardized financial reporting protocols, checks and balances. Top management also must certify the integrity and accuracy of the financial statements.

Here are some policies and procedures the act requires of every corporation:

1. A whistle-blower policy that also spells out anti-retaliation rules
2. An audit committee
3. A charter for the audit committee that spells out committee member roles and responsibilities
4. A document retention and destruction policy outlining how and how long documents are kept

Action Steps
The best contacts and resources to help you get it done

Obtain a summary of SOX requirements

If you're a corporation, you need to know the details of Sarbanes-Oxley and you must bring yourself into compliance. Several Web sites, including the federal government's Securities and Exchange Commission, list the requirements

I recommend: Check out these sites for a summary of what you must do to comply: SWLearning, SoxLaw.com, the SEC SoxAct page

Get help from your audit firm

The company that audits your business can advise you on how to comply and how to keep proper records that comply with Sarbanes-Oxley regulations.

I recommend: The American Institute of Certified Public Accountants lists ways your CPA firm can help you get on the right side of the regulations.

Set up a whistle-blower policy

Sarbanes-Oxley requires you to establish a whistleblower policy that protects the whistleblower from retaliation. Common policies include sections on confidentiality and handling of reported violations, usually to a member of the audit committee.

I recommend: Find a sample whistler-blower policy that you can tailor to your company from the National Council of Nonprofit Associations.

Follow document retention requirements

One of the key components of SOX is retention of records for a certain period of time. The best way to do this is set up a record retention policy that complies with the act and generally accepted accounting principles.

I recommend: Download a sample record retention policy from the American Bar Association, make sure you're in compliance with SOX and other state and federal regulations on record retention by checking a table from this QuickBooks site, and find a list of questions to ask when setting up a retention policy from the Web site of law firm Holme Roberts & Owen.

Use special software programs

From helping you set up internal controls to testing and managing databases, software can help you comply with the Sarbanes-Oxley Act.

I recommend: You can get SOX software from Expensewatch.com and Quask.

Set up an audit committee

You must set up an audit committee and designate responsibilities to certain members. SOX mandates that certain committee members have specific financial certifications.

I recommend: This CPA Journal guide tells you how to set up an audit committee that meets requirements, as does this Securities & Exchange Commission guide. The Institute of Internal Auditors provides a sample audit committee charter.

Publicly traded companies have additional SOX responsibilities

If you're a publicly traded company, senior management must certify the integrity of your financial statements. You are also subject to audits of your internal controls and limitations on personal loans to executive officers or directors.

I recommend: For a list of the additional responsibilities of a publicly traded company, click on the University of West Georgia guide and this CPEOnline primer.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure your IT system is robust enough to produce timely, accurate and detailed financial reports to comply with Sarbanes-Oxley.
• •  Your compliance should include ways to make sure emails concerning financial matters are saved for a specified period of time and accessible from archives if needed.
• •  Consider an email policy that underscores to employees the fact that any and all emails on financial matters could be retrieved by regulators.
• •  Consider setting up regular internal audits to make sure you are in compliance of Sarbanes-Oxley.
• •  Many companies establish policies and practices and then fail on implementation. Be as rigorous in your implementation as you are in creating your policies.

The Sarbanes-Oxley Act, legislation passed in 2002, has a large effect on accounting practices for any level of business, and its ramifications reach from corporate accounting into other areas like municipal accounting as CPAs and public accountants throughout the financial industry consider the provisions of the act. Sarbanes-Oxley is an attempt toward reforming some accounting practices that tend to contribute to problems within the financial field.

Business managers involved in accounting often know about Sarbanes-Oxley, (also called the SOX ACT for short) and have some general ideas on compliance, but anyone wanting to learn more can use the sites of specialized news makers to get further informed on what is going on around this legislation in today's markets. When looking for Sarbanes-Oxley Act news and trends, business leaders may want to know:

1. How others are pursuing Sarbanes-Oxley compliance through changes in auditing and budget records.

2. How Sarbanes-Oxley information and the law affects accounting firms and their clients and how Sarbanes Oxley consulting works to the advantage of some firms.

3. How businesses and civic officials feel about the effects of Sarbanes-Oxley on the marketplace.

Action Steps
The best contacts and resources to help you get it done

Get more news and information about Sarbanes-Oxley solutions for compliance

As accountants share information about how to work with the Sarbanes-Oxley legislation, business leaders can find ready sources of information on what is commonly done toward compliance from handy online resources.

I recommend: Asset Management Resources offers a blog, which provides resources for those interested in finding out more about Sarbanes-Oxley compliance. It also offers news and information about fixed asset management inventory and reconciliation. Get more news on fair value accounting from a leading news source for Sarbanes-Oxley compliance at FierceSarbox, a FierceMarkets publication.

Receive news on upcoming legislation and the latest on possible Sarbanes-Oxley requirements

Another aspect many financial business people are looking very closely at is the changes that are always on the horizon. Just like the SOX ACT, other initiatives are always under consideration to change the way America does business. News outlets can give leaders a heads up on what may be around the corner.

I recommend: Sign up for email alerts and a newsletter to get information on what's brewing on Capitol Hill from the Center for American Progress, where you can find some of the upcoming legislative issues inspected continually. For news briefs and more from a national trade association for the consumer credit industry, go to the American Financial Services Association (AFSA) and use all its handy site features to find out about future legislative possibilities.

Check responses to financial laws to learn more about Sarbanes-Oxley Act news and trends

When researching on SOX compliance or getting news on trends within the industry, some readers might want to look at some responses to the legislation, and how these standards are perceived. Find news sources where you can see some feedback from 'the street' and learn more about how legislation interacts with the markets.

I recommend: Visit CIO Insight for news and trends on Sarbanes-Oxley and learn what others think of compliance issues. Read more Sarbanes-Oxley responses from The CPA Journal, a trade resource for accountants.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Avoid taking generalized Sarbanes-Oxley Act information over the advice of your own accountants and auditors. Legislation affects businesses differently, and workers familiar with a certain type of accounting generally fit the standards and considerations into a more specific set of goals.

The Sarbanes-Oxley act, otherwise known as SOX, came from the federal government in 2002, in the wake of some pretty heavy financial scandals. There are many provisions in SOX, such as reporting requirements, record policies and much more, in order to make sure that corporations are responsible in keeping with their impacts on markets, investors, stock holders and the general public. Knowing about some of the main key terms on SOX can help businesses navigate this world of protocol and be compliant, as well as expect the same of others.

Action Steps
The best contacts and resources to help you get it done

Corporate responsibilities

This general component of the Sarbanes-Oxley legislation refers to all of the things a company, especially a publicly traded one, must do in order to be SOX compliant.

I recommend: See more on corporate responsibilities at Sarbanes Oxley Compliance Toolkit.

Whistleblower policy

One thing a company needs to do under Sarbanes-Oxley is provide a whistleblower policy, or a way to protect those who come forward with information that may be damaging to the company but necessary for compliance or legality.

I recommend: Find out more about whistleblower policies at Sarbanes Oxley Explained.

Document retention

Another element of complying with Sarbanes-Oxley is in document retention. A lot of 'corporate dodges' rely on 'lost' or missing paperwork. For this reason, document retention policies get noticed by auditors.

I recommend: Haslaw (PDF) details some general standards on document retention for companies. Find more on document retention at Street Directory.

Internal controls

Another aspect of SOX is looking at how financial reporting gets done within any company or organization. There are all kinds of rules and standards for setting up 'checks and balances' or other prudent kinds of protocols for making sure reporting is happening the right way.

I recommend: Get a detailed explanation of internal controls from Indiana University.

IT Audit

A lot of the work being done around Sarbanes-Oxley focuses on the ways data is managed electronically. An IT audit, or examination of the work and systems within the Information Technology department, would address this significant chunk of corporate responsibility.

I recommend: Find details on planning an IT audit from FT Press.

Real-time disclosures

Yet another aspect of SOX that applies to publicly traded companies is the issue of reporting to the public, or the investor. The ways that financials are disclosed have a strong impact on how investments are made, and one of the gates that SOX is meant to close is the kind of bad reporting that has allowed corporate executives to manipulate stock holders in the past; it allows for timely information on which the stock holders can rely.

I recommend: Find out more about real-time disclosures at BellaOnline.