Sarbanes Oxley Compliance

Sarbanes Oxley Act has taken steps to ensure the anonymity of the whistleblower of a corporate scandal.  With many of the recent corporate scandals, the whistleblower has lost their job and professional reputation for standing up for the "good" of the company and acting in an ethical manner.

The Sarbanes Oxley Act is working towards a reputable and anonymous circumstances for any Sarbanes Oxley whistleblower's accusations to be investigated and taken care of while ensuring the whistleblowers protection against discrimination, job loss, demotion and other wise harassment.

Section 302 of Sarbanes Oxley Act explains: "Each audit committee shall establish procedures for the confidential, anonymous submission by employees of the issuer of concerns regarding questionable accounting or auditing matters."  It is also stated that retaliation against a whistleblower (if found out), will not be tolerated among the Sarbanes Oxley committee.

Internal Control boards are usually the place for a whistleblower to submit their concerns and questions regarding the financial reporting and Sarbanes Oxley issues. However, it has been determined that this may not be in the best interest of the whistle blower, as the internal control committee may have close relations with the daily duties of company employees and the whistleblowers identity may be found out.

It is encouraged for companies to have an external control board that is separate from daily activities so that an employee may make claims and ask questions solely based on the information, without any identity. Whether the control board is within or external, the Sarbanes Oxley whistleblower will be protected against discrimination based upon the acts definition and safeguards.

Overall, it is important for each company to understand the guidelines of Sarbanes Oxley including its whistleblower policy. Because of the severe nature of whistleblower allegations, it is imperative that a company understand not only the rules of the act but also the implications of dealing with a whistleblower if fraud is detected by an inside employee. Also, it is in the best interest of the company to fully understand what pitfalls may come with non-compliance and whistleblower discrimination. Both can be detrimental to any profitable company.

Contact Privacy Policy And Terms Of Use