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Because this is your first week as vice president (VP) of finance at Apix, several members of the top management team have stopped by your office. Timothy Russell, chair of the audit committee, comes in first to talk with you about the Sarbanes-Oxley Act of 2002 (SOX).

“Welcome to Apix,” he says. I hope you’re getting comfortable with us here. We have a lot on our plate, and we need your assistance with some important compliance issues.”

“Thanks, Tim,” you say. “Mary Francis mentioned Sarbanes-Oxley when I talked with her last week. Maybe we can start with that.”

“Right. As you know, our company is private and will eventually need to seek external funding. In fact, we have some potential investors that are interested. However, they want to know more information, especially about the compliance.

“I would like for you to provide us with a write up that we could share with the investors. Specifically, outline what the Sarbanes-Oxley Act is and what impact it has on financial reporting. As well, discuss what Section 302 requires of the chief executive officer (CEO) and chief financial officer (CFO).”

“Ok, I’m on it!”

Complete the following:

  • In 400- 500 words, outline what the Sarbanes-Oxley Act is and what impact it has on financial reporting.
  • Discuss what Section 302 requires of the chief executive officer (CEO) and chief financial officer (CFO).

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