Regional-focused Compliance - Governance, Risk, and Compliance Topic for Oracle Applications - page 400

Corporate Responsibility
Title III consists of eight sections and mandates that senior executives take individual
responsibility for the accuracy and completeness of corporate financial reports.
It defines the interaction of external auditors and corporate audit committees,
and specifies the responsibility of corporate officers for the accuracy and validity
of corporate financial reports. It enumerates specific limits on the behavior of
corporate officers and describes specific forfeitures of benefits and civil penalties
for non-compliance. For example, Section 302 requires that the company's principal
officers. (typically the Chief Executive Officer and Chief Financial Officer) certify and
approve the integrity of their company's financial reports quarterly.
Enhanced Financial Disclosures
Title IV consists of nine sections. It describes enhanced reporting requirements for
financial transactions, including off-balance-sheet transactions, pro forma figures,
and stock transactions of corporate officers. It requires internal controls for assuring
the accuracy of financial reports and disclosures, and mandates both audits and
reports on those controls. It also requires timely reporting of material changes
in financial conditions and specific enhanced reviews by the SEC or its agents of
corporate reports.
Analyst Conflicts of Interest
Title V consists of only one section, which includes measures designed to help
restore investor confidence in the reporting of securities analysts. It defines the
codes of conduct for securities analysts and requires disclosure of knowable
conflicts of interest.
Commission Resources and Authority
Title VI consists of four sections and defines practices to restore investor confidence
in securities analysts. It also defines the SEC's authority to censure or bar securities
professionals from practice and defines conditions under which a person can be
barred from practicing as a broker, advisor, or dealer.
Studies and Reports
Title VII consists of five sections and requires the Comptroller General and the SEC
to perform various studies and report their findings. Studies and reports include the
effects of consolidation of public accounting firms, the role of credit rating agencies
in the operation of securities markets, securities violations and enforcement actions,
and whether investment banks assisted Enron, Global Crossing, and others to
manipulate earnings and obfuscate true financial conditions.