Question

Is the SOX-driven effort being made to check on the effectiveness of internal control systems worth the cost and do you feel it is working? Why and why not?

Do you have any suggestions to add or change the SOX provisions to strengthen corporate governance for public companies? .

Answer 1

In the present world full of scams and corruptions, the internal control plays a significant roles. An adequate and strong internal control help the organisation to run effectively and also ensures management regarding the sustainability of the organisation. The SOX audit help the auditor to identify the process level controls and thus enable the organisation to make processes more strong so that possibilities of fraud and scam can be reduced to minimum. An organisation need to bear the cost for SOX driven effort, however considering the current market scenarios, scam and fraud the internal audit ensures that there are no loopholes at the process level and it also involves some transactional checking and thus ensures whether appropriate maker checker mechanism, sufficient approval mechanism etc are in place

SOX provision can be made more clear and the relevance of same should be explained to public. Further, the provision should be updated to provide more acess to the auditors and to increase the accountability of management of the organisation towards the internal audit. The provision should be strenghten so that the corporates can understand the relevance of the internal control based audit and will proviode adequate emphasis over the results of audit