SALIENT PROVISIONS OF THE ACT

Question 1

Financial reports and statements must certify that the
documents have been reviewed by the signing officers
and passed internal control within the last 90 days.
The documents are free of untrue statements or
misleading omissions. The documents truthfully
represent the company’s financial health and position.
The documents must be accompanied by a list of all
deficiencies or changes in internal control and
information on any fraud involving company
employees.

Answer 1

Section 302

Question 2

Financial statements are required to be accurate.
Financial statements should also reflect of any offbalance liabilities, transactions, or obligations

Answer 2

Section 401

Question 3

Companies must publish a detailed statement in their
annual reports explaining the structure of internal
control used. The information must also be made
available regarding the procedures used for financial
reporting. The statement should also assess the
effectiveness of the internal controls and reporting
procedures

Answer 3

Section 404

Question 4

Companies are required to urgently disclose drastic
changes in their financial position or operations,
including acquisitions, divestments, and major
personnel departures. The changes are to be
presented in clear, unambiguous terms

Answer 4

Section 409

Question 5

Any company official found guilty of concealing,
destroying, or altering documents with the intent to
disrupt an investigation, could face up to 20 years in
prison and applicable fines.
Any accountant who knowingly aids company officials
in destroying, altering, or falsifying statements could
face up to 10 years in prison.

Answer 5

Section 802