switching labor hours 2972

  • Is listing maintenance labor hours as production labor hours so maintenance department looks better and production levels look low a violation of the Sarbine-Oxley Act?

  • No. The Sarbanes Oxley act has no specific rules regarding reporting. Sarbanes Oxley is in place to help ensure the accuracy of externally-reported financial results.
    What is does cover is assessment of the effectiveness of internal controls. If there are specific policies identified within your organization around the reporting of labor hours as maintenance or production and this impacts externally reported results, then there should be controls to ensure the accuracy of the reported hours within each area. If hours are not being reported properly, then there is a control failure that needs to be addressed.

  • Thank you so much for your quick response. These numbers I speak of where used to evaluate an employee that the company said was not living up to expections eventhough the numbers were manipulated. Perhaps it is a case of Charlatanism?

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