A Certified Public Accountant, James Kasim leads as chief financial officer and treasurer of a commercial real estate company. James Kasim possesses spent 12 years at Ernst & Young LLP, where he honed skills in Sarbanes-Oxley internal control management.
The Sarbanes-Oxley Act of 2002, commonly referred to as SOX, outlines proper measures for conducting financial practices and carrying out corporate governance. The legislation consists of 11 titles that contain sections further detailing each law. Sections 302 and 404 are considered among the most important regulations.
Section 302 addresses corporate responsibilities for financial reports. Listed under Title III, the section stipulates that all financial reports provide accurate information and avoid language that can be considered misleading. In addition to reviewing the reports, signing officers take responsibility for proper execution of internal controls. Companies must report any fraudulent activities and include the names of the offending parties.
Under Title IV, Section 404 focuses on management assessment of internal controls. It requires companies to be transparent in how they handle internal controls. Transparency is achieved by publishing the information in annual reports and giving an explanation on its effectiveness.