Terminated after giving notice siting Sarbanes-Oxley 1242

  • I must admit I had not heard of the Sarbanes-Oxley Act until today. I am a commissioned sales rep and I gave my employer notice today of my intention to leave at the end of the month. They got back to me and said that I was terminated as of today and sited Sarbanes-Oxley. Can someone explain how this act pertains to this action.

  • There is nothing in the Sarbanes-Oxley Act which would require them to take such a course of action. Ask them to cite the specific regulation.
    Sounds like they are trying to get out of paying out your notice period.

  • Hmm… quite a creative approach. What’s next? Companies will start referring to Daimler-Chrysler and Newton’s Laws when laying off people?..

  • It is not the first time I hear that somebody is fired ‘for Sarbanes Oxley reasons’. Working as a litigation consultant and subject matter expert, I have also discussed it with auditors and lawyers.

    There is a strange interpretation of COSO behind that :roll:
    COSO, Control Environment
    5 components of internal controls

    1. Control Environment
    2. Risk Assessment
    3. Control Activities
    4. Information and Communication
    5. Monitoring
    6. Control Environment
      There are ‘temptations’ 8O
      Insignificant or unpublicized penalties for improper behavior - no deterrent controls
      Risk: Dishonest, illegal or unethical acts simply because the organizations give temptations to do so.
      Control: Advertise penalties. For Sarbanes Oxley reasons. Period.
      After that, auditors will like your control environment and they will perform fewer tests, because you are serious. 8O :roll:
      You don’t believe it? It was difficult for me to believe something like that the first time… but it is true. And there are some consultants behind that. :oops:

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