The Revolutionary Sarbanes-Oxley Act of 2002 (SarbOx).
The Sarbanes-Oxley Act has come to pass as a consequence of the scandals found in the untruthful quarterly and annual reports of certain public companies. Among other unethical business practices, investors and government officials were deliberately misled by the practice of recognizing sales from the manufacturer and distributors to the resellers as final sales. Incidentally, manufacturers and distributors declared these sales as revenue. Since the distributors were not paying for the product until they had acquired payment from their resellers, they were returning the unsold products to the manufacturers after the reporting period. Such practice caused deceptive reporting by the manufacturers.
Therefore, the Sarbanes-Oxley Act Regulations has caused chaos within public companies by insisting that they become instantly SarbOx compliant. Threats of increased CFO imprisonment time have escalated from ten years to twenty-five years. In addition, these CFOs can be charged up to five million dollars in personal fines. The new regulations demand that responsibility for their corporations’ financial reporting be taken with the utmost seriousness.
How Computer Market Research Can Assist in Sarbanes-Oxley Act Regulations and Compliances
At Computer Market Research (CMR), we take a result-driven approach. Our solutions provide you immediate access to the ultimate in channel intelligence. Using our automated platform, we will help you collect, process, and analyze all of your channel partner data. Our software is in compliance with the Sarbanes-Oxley Act. Therefore, your company’s sales and inventory metrics with an audit trail are always available.
With solutions like Channel POS™, CMR eliminates the problem of inaccurate reporting of recognized revenue within a three-tiered channel distribution system. The application creates detailed revenue reports from raw POS records at the distributor, reseller, product, and end-user levels. The constant worry of inaccurate documentation dissolves as our team translates raw data into real-time actionable data. Consequently, this data provides the business intelligence, as required by the new rigid regulations, Sarbanes-Oxley Act.
With the objective documentation generated by our frequent reports, our clients, their investors and most importantly, their auditors have no opportunity to subjectively doubt the ethics of the business practice.
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Learn how our cloud-based channel POS platform can help your team comply with the Sarbanes-Oxley Act