The Message From Congress: Boards Should Retake The Reins
- Topics:
- Sarbanes Oxley Compliance
- Tags:
- Audit,
- Board,
- Bricker & Eckler,
- Business Operations,
- Corporate Governance,
- Corporate Law,
- Finance,
- Financial Accounting,
- U.S. Congress
- Source:
- Bricker & Eckler
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Overview: Article talks about the message issued by Congress to the governing board's that American businesses have to take active action to do better job for governing themselves. It discusses the few steps taken by the Congress, as governing board's function is to give direction by decision-making, oversight, and mentoring. Boards function by delegating. They delegate to management the authority and responsibility for executing and managing the corporation's everyday affairs. In the American corporate model, management is headed by a CEO, who typically has the power to hire, fire, and compensate every other member of management. Sarbanes-Oxley is Congress' first step to restore authority to the board and increase the accountability of management. Congress has gone a step farther by directing the SEC to prescribe rules making it unlawful for any officer to fraudulently influence the performance of an audit and by changing the criminal code to make it a crime not to retain audit workpapers and other documents that form the basis of an audit.
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Format: HTML | Date: Sep 2002 | Pages: 1
