sarbanes oxley act 2002?

Question

We are a Mfg Rep. We sometimes are asked by customers to send in a purchase order. We do our best to use theirs but some customers want us to do it for them. Are we liable at that point if a mistake is made. Should we insist on having them send us a P.O.? Or can we send in a generic P.O. that is on the software?

Answer 1

The biggest question is this. Is your company a publicly traded company? If no, then don't worry about it, as SarbOx only applies to publicly traded companies.

Answer 2

The point of the Sarbanes-Oxley law is that there is a clear trail for orders and purchases. You can't send in an invoice that says "Stuff: $15,000, Labor: $20,000." You have to detail what the stuff is and what the labor costs are.

Each item should be broken down to reasonable units, such as parts being listed by the per-part cost. Labor should be broken down to hourly costs. Therefore, the invoice should be something like:

Steel beams: three @ 1,000 each = $3,000
Bolts: Two boxes at $100 each = $200
Labor: 80 hours at $125 per hour = $10,000

It's common sense, really, but you'd be surprised how difficult it is to get some businesses to supply quotes, purchase orders and invoices with this kind of detail. As long as you list items on your POs and invoices by the individual units and prices, you should be fine. Of course, you should double-check with an accountant and attorney to get the final word on this.

Answer 3

try google or ask.com