Question:
What does compliance with Sarbanes-Oxley Act Part 202 mean?
Sarbanes Oxley Compliance
Part 202 of the Sarbanes Oxley Act of 2002 involves quarterly reporting requirements by public entities. Part 302 places responsibility on the CEO and CFO's shoulders by requiring them to personally certify that they are responsible for the proper disclosure, internal controls, and procedures. Part 302 also requires the CEO and CFO to state that they performed an evaluation of internal controls. They must attest to the fact they notified their Audit Committee and independent auditing firm of any deficiencies found.
Part 404 involves annual reporting requirements. Each public entity must include a report by management about the entity's internal controls over financial reporting. In other words, management must assert to the effectiveness of the internal controls in place. Part 404 also states that management's assertion must be certified by independent auditors.
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