It is an Act to
protect investors by improving the accuracy and reliability of corporate
disclosures made pursuant to the securities laws, and for other purposes.
This legislation has
the purpose of protecting the interest of a company’s shareholders through
amending regulations in financial practice and corporate governance. This is of
substantial value however; it is more complex and strict when it comes to
compliance and independence in order to prevent fraudulent activities and boost
management has to increase their oversight of the activities that the company
undergoes and the independence
of the outside auditors who review the accuracy of corporate financial
statements is more strengthened. The act greatly affected issues auditor
independence, corporate governance, enhanced financial disclosure and internal
As to the organization of
my choice, businesses such as large scale companies such as corporations should
really adhere and follow SOX since it is truly a repsonsibility. It can be more
costly and complicated but it still gives long-term benefits and security in the
company, its shareholders and prospected investors.
hope this helps! :) Good luck.
Oct 27th, 2014
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