CEO's Responsibilities

A cornerstone of the Sarbanes Oxley legislation is the ownership CFOs and CEOs have for the quality of reporting of the financial health of their company. They are seen as more than the leaders of their companies; increasingly they have to act as stewards responsible to ensure that all processes in the company are working in the interests of shareholders. Under its Sections 302 and 906, they are required to certify quarterly and annual reports filed with the SEC. The certification confirms whether the CEO and CFO have reviewed the reports and can vouch that the reports are truthful and do not omit material information and fairly represent the financial situation of the company. The onus is also on the CEOs and CFOs to review all procedures and internal controls within the preceding 90 days and have disclosed material weaknesses in them and any significant changes after the most recent evaluation.

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