have reviewed the report that it did not contain any false information either by omission or by misleading and that the financial statement fairly reflects the true financial condition of the company (www.soxlaw.com a, 2003). In addition, the signing officers must have also reviewed the internal controls of the company. Section 404 of Sarbanes-Oxley Act on the other hand mandates that issuers are required to publish their annual reports “concerning the scope and adequacy of the internal control structure and procedures for financial reporting. This statement shall also assess the effectiveness of such internal controls and procedures” (www.soxlaw.com b, 2003).
In the case of Apex Printing, they have only complied with the Section 404 of Sarbanes-Oxley Act which is the requirement to publish their annual reports and its attending internal control structure but it is not yet certified by signing officers that the financial information that they will publish is materially true and accurate. In effect, it is like making known the company’s financial information without ensuring its accuracy which is susceptible to misrepresentation if not downright unethical.
The importance of being compliant in the Section 302 is not only to avoid criminal liability from regulatory agencies such as Security of Exchange Commission but also to become an ethical company. In an age of heightened public awareness against corporate malfeasance, it will not be right to skirt laws which are designed to protect the interest of the various shareholders of company from fraud. It will hurt the reputation of the company which has numerous repercussions from not being able to do an IPO to source external funding to non-patronage of its products or services in the market due to the suspicion of its customers that the company is a fraud.
Considering the various repercussion of non-compliance to Section 302 of Sarbanes Oxley Act, that ranges from a) non-launch of an initial public