What is the Sarbanes-Oxley Act?
Due to high-profile business failures of companies such as Enron and Tyco International, the Sarbanes-Oxley Act of 2002 (SOX) was enacted to protect investors by improving the accuracy and reliability or corporate disclosures. SOX establishes new or enhanced standards for all U.S. public and international companies that have registered equity or debt securities with the Securities and Exchange Commission. It also affects related businesses including accounting and information management professionals who provide financial and reporting services to them.
Penalties for non-compliance:
SOX is very complex and penalties depend on which section of the act was violated. Penalties range from the loss of exchange listing, loss of D&O insurance to multimillion dollar fines and imprisonment. For example, a CEO or CFO who submits wrong certification is subject to a fine up to $1 million and imprisonment for up to 10 years. If the wrong certification is submitted "willfully", the fine can be increased up to $5 million and the prison term can be increased up to 20 years.
How do I comply?
Among other things, SOX requires companies to implement detailed policies and procedures for the retention, control, management, usage and disposal of information.
How can Ohio Mobile Shredding help?
OMS can provide you with destruction of your documents once their retention period ends. Our comprehensive Audit Trail and Certificate of Destruction will provide you with a chronological history of shredding, establishing your adherence to a program and responsible destruction procedures. It will also eliminate the chance that shredding practices will be construed as suspicious.
With Ohio Mobile Shredding, compliance with SOX could not be easier!