Question

"The Sarbanes-Oxley Act of 2002 and the Criminal Justice System" Please respond to the following: The Sarbanes-Oxley Act requires the chief executive officer and the chief financial Officer of public companies to personally certify annual and quarterly SEC filings. These certifications require the CEOs and CFOs to take responsibility for their companies’ financial statements. From the e-Activity, assess the importance of the criminal certifications and the civil certifications, and determine whether or not such certifications will be effective in reducing and detecting fraud in corporations. Fraud may be prosecuted criminally or civilly. Anytime the legal issue at hand involves money or fraudulent activity, forensic accountants and fraud examiners can play an important role in the investigation. Compare and contrast the remedies available in the civil and criminal justice system, indicating which system is most effective.

Answer 1

Criminal and civil certifications are different un the sense that the former is used when due to any illegal activity society as a whole us effected, or it is also used when victim is an individual.

Whereas civil certification is used when the crime effects individuals.

Criminal case is filed and initiated by the federal court and tge jury decides the case based on evidences.

But civil case is filed as a result of disputes between the individuals.

Both of these certifications work in a different way but the aim behind the litigation is same, prosecution of the convict and providing justice to guilty.

Remedies available in the system are:

1. Prosecution of the convict.

2. Demanding money of investors by liquidating or selling the assets of the company.

3. Seizure of the convict activities.

In civil system the convict if not satisfied of the order of course can go to the higher authorities.

Remedies available are:

1. Actual damages and the charges of litigation are recovered.

2. Exmplaray damages of not more than more than 3 times are awarded.

So, the criminal.litigstion system is better as they provide with more exmplaray punishments for corporate fraud.