Type of paper: Essay

Topic: Politics, Audit, Employee, Workplace, Organization, Company, Management, Finance

Pages: 1

Words: 275

Published: 2021/01/29

Specific SOX regulations on whistleblowing

Whistleblowers employed in publicly traded companies are protected from discrimination. Section 806 of the Act outlines provisions that ensure such employees are protected. The section further provides that employees subjected to discrimination for whistleblowing can file a suit against the employer with the US Department of Labor. The OSHA investigates the complaints and if, the allegations are confirmed, the employee will be entitled to a full ‘make whole remedy.’ The remedy includes reinstatement, compensation for special damages, and refund of legal fees, among other benefits. The Act also prohibits retaliation against the employees who engage in whistleblowing. Section 301 of the Act also requires listed companies to establish audit committees that are responsible for developing procedures for obtaining complaints from employees and protecting their anonymity.

How to encourage whistleblowing

An organization can promote the culture of whistleblowing by forming an independent audit committee as provided for in Section 301 of the SOX Act. The audit committee should a whistleblowing policy in the organization. The policy should provide a framework for reporting illegal and unethical practices. In addition, the policy should clearly state that the organization prohibits any retaliatory acts against whistleblowers. There should be a statement indicating commitment from the top management. Furthermore, the organization’s commitment to encouraging whistleblowing and to protect whistleblowers should be publicized. Finally, whistleblowing can be encouraged by rewarding employees that report unethical practices.

Guidelines for internal audit over financial reporting

The internal audit is critical for effective internal controls. This ensures better financial reporting by the management of the company. Section 404 of the SOX Act obliges the management to make an assertion as to the effectiveness of the company’s internal controls. The internal audit is an important internal control for ensuring accuracy and completeness of the financial reporting process.

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WePapers. (2021, January, 29) Example Of Essay On Auditing. Retrieved March 03, 2024, from https://www.wepapers.com/samples/example-of-essay-on-auditing/
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WePapers. Example Of Essay On Auditing. [Internet]. January 2021. [Accessed March 03, 2024]. Available from: https://www.wepapers.com/samples/example-of-essay-on-auditing/
"Example Of Essay On Auditing." WePapers, Jan 29, 2021. Accessed March 03, 2024. https://www.wepapers.com/samples/example-of-essay-on-auditing/
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"Example Of Essay On Auditing," Free Essay Examples - WePapers.com, 29-Jan-2021. [Online]. Available: https://www.wepapers.com/samples/example-of-essay-on-auditing/. [Accessed: 03-Mar-2024].
Example Of Essay On Auditing. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/example-of-essay-on-auditing/. Published Jan 29, 2021. Accessed March 03, 2024.
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