||Oracle Tips by Burleson
Sarbanes-Oxley Act of 2002
Sarbanes-Oxley Act (SOX) became law on July 30, 2002 and applies to
companies listed on the U.S. stock exchanges. The Act requires the CEO
and CFO to certify and be personally liable for the accuracy of annual
and quarterly financial reports under penalty of law. In addition,
they are responsible for establishing and maintaining internal
controls, and reporting on their effectiveness. Reporting must also
Significant deficiencies in the design or
operation of internal controls.
Any fraud that involves management or other
employees integral to internal control processes.
Any changes to internal controls.
Section 301(4) of the Sarbanes-Oxley Act requires
procedures for the collection and resolution of employee complaints
regarding financial and accounting control issues. Complaint
procedures must allow for anonymous and confidential submissions of
Certain IT employees may have knowledge of
financial information and procedures in the course of their job
responsibilities. It is unlawful under the whistleblower provision of
Sarbanes-Oxley to terminate an employee for reporting improper
financial practices. In such cases, the fired IT employee may be
reinstated with back pay and interest, reimbursed for legal expenses,
and have all related information that is damaging to the employee
removed from his or her personnel file.
There have been increasing numbers of claims
against companies for violations of the Sarbanes-Oxley Act. Barron
Stone filed a SOX lawsuit against his former employer Duke Energy.
Stone alleged that he was wrongfully terminated
for reporting questionable financial practices by his employer. The
initial complaint to the Department of Labordeclared that Sarbanes-Oxley was not violated. Stone appealed the
case and the Department of Labor then allowed the plaintiff to file a
Federal lawsuit. There are several other cases with similar stories.
Governmental agencies are now just working out how to process these
types of claims.
The above book excerpt is from:
Firing Computer Professionals
manager Guide for Terminating "With Cause"