Individual Case #1 – SEC enforcement of Sarbanes Oxley violations
The SEC’s enforcement division investigates public companies for violations of securities laws and regulations. The Sarbanes Oxley Act mandates that the SEC prescribe the rules for public companies to follow regarding their reports of internal controls over financial reporting. Now that you are familiar with those rules from reading SOX sections 404 and 302 and the SEC Management’s Guidance, your task is to research and write a report on a SEC’s enforcement case against a CEO and CFO for violations of SOX requirements. Your case is the SEC investigation of CEO Marc Sherman and CFO Edward L. Cummings of QSGI Inc.
Requirements:
Prepare a 2 page report summarizing the violations and describing the outcome and consequences of the case. The report should be single spaced and 12 font. You should use in text citations and include the references in the footnotes. To start your research find:
the SEC’s press release concerning the SOX violations
the SEC’s order against Sherman and Cummings
You may also use articles written in sources such as the Wall Street Journal or other reputable business press.
