Which policy from the Sarbanes-Oxley requirements is recommended for associations?

Establishing an Audit Committee with a financial expert is a recommended policy for associations as per the Sarbanes-Oxley Act. This legislation was enacted to enhance corporate governance and accountability in response to major financial scandals. One of its key requirements is that publicly traded companies must have an independent audit committee composed entirely of members of the board of directors who are not part of the company’s management.

For associations, implementing a similar policy helps ensure proper oversight of financial reporting and auditing processes. By including a financial expert on the Audit Committee, associations can benefit from an informed perspective on financial affairs and can enhance the credibility and accuracy of their financial statements. This structure also promotes transparency and integrity within the organization, fostering trust among members and stakeholders.

Other options, such as creating an Advisory Board or implementing a marketing strategy, do not directly address the core financial governance and accountability issues that Sarbanes-Oxley aims to resolve. While these actions may be beneficial in their own right, they do not align with the key requirements and recommendations laid out in the Sarbanes-Oxley framework.