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(From Financial Director)
Byline: Anthony Harrington.
Nothing focuses an FD's or CEO's mind like the threat of jail, which explains why the US Sarbanes-Oxley Act of 2002 is exercising companies all over the world. To be sure, the act is asking for nothing that CEOs and FDs should not already be practising. It wants to achieve a high degree of confidence that these senior corporate executives understand what lies behind the numbers in their reported results.
Before Sarbanes-Oxley, the world tended to take this for granted. Corporate scandals with key executives claiming ignorance of what was really going on changed things. The new element in the ...