Question

SOX was a very large piece of legislation that still has profound effects to this day. Knowing what you now know from our reading, do you think SOX went too far, or not far enough, or just right? What provision out of SOX do you think is the most important?

Answer 1

Due to corporate scandals SOX was brought to enact to reestablish the investor's faith in corporate governance.
In 2002, US Congress passed the SOX act to protect sgareholders & general public from fraudluent practices in orgnization.
It is applicable to private companies also.
The SOX act widely perceived to regulate only public companies which is not correct.
The purpose behind this act is to review legislative audit requirements & to protect investor by improving the accuracy & reliability of corporate disclosure.

Sometimes in debate about effects of SOX act it has made a greater focused on corporate governance.
Needed improvement in audit quality is a contuining concern.

Important provision out of SOX act-
section 302 Corporate Social Responsibility (CSR)-
Section 401 Disclosure in periodic Reports
Section 404 Management assessment of Internal controls
Section 409 Real time issuer disclosure
Section 806 Protection for employees of publicly traded companies who provide evidence of fraud
Section 902 Attempts & conspiracies to commit fraud offenses
Section 906 Corporate responsibility for financial reports