Question

I wanted to get your thoughts about whether Sarbanes Oxley is effective and what the challenges may still be ?

Answer 1

ANS:-ABOUT THE WEATHER SARBANES OXLEY IS EFFECTIVE AND IN THE WAKE OF A VARIETY OF ACCOUNTING SCANDALS THAT COST INVESTORS BILLIONS OF DOLLARS,THE SARBANCES OXLEY ACT WAS INTRODUCE IN 2002 TO PROVIDE ASSURANCE ABOUT THE ACCURACY AND COMPLETENCESS OF FINANCIAL STATMENTS.

THE INTENT OF THE REGULATION WAS TO PREVENT THE COLLAPSE OF EQUITIES AND RESTORE INVESTORS CONFIDENCE IN THE MARKETS,

WHILE A PERFECT WORLD IS UNACHIEVABLE 15 YEARS LATER ,INVESTORS CONFIDENCE HAS CERTANITY MADE GREAT PROGRESS AND THE GOVERNANCE LANDSCAPE HAS BEEN RESHAPED SIGNIFICANT . BUT THE POSITIVE IMPACT OF SOX HAS EXTENDED BEYOUND ITS INITIAL GOALS AND IT SHOULD CONTINUE TO BE RELEVANT AS IT EVOLVES TO ENCOMPASS NEW DEVELOPMENTS.

WHEN THE FRIST INTRODUCE SOX WAS SEEN AS A HUGE AND BURDENSOME EXERCISE FOR PUBLIC COMPANIES OF ALL SIZES.BUSINESS MAN HAD LITTLE KNOWLEDGE OF IT AND OFTEN HAD TO SPEND MUCH MONEY AND MANPOWER TO GET IT IMPLEMENTED.

NOT ONLY THAT BUT IT ALSO REQUIRED MANY PEOPLE TO OVERSEE THE PROCESS AS COMPANIES TENDED TO ENSURE THAT THEY WERE OVER COMPLIMENT.

THE SIGNIFICANT COSTS AND COMPLEX REGULATION MADE SOX THE BANE OF MANY CORPORATIONS . FAST FORWARD TO NOW ,SOX HAS ALLOWED A MORE EFFICIENT AND STREAMLINED APPROCH THAT FOCUSES ON THE AREAS OF REAL RISK RATHER THANE A CATCH ALL APPROACH.COMPANIES THAT HAVE PUT SUFFICIENT RESOURCES AND EFFORT INTO DESIGNING STRONG SOX PROGRAMS HAVE CLEARLY UNDERSTOOD THE BENEFITS THAT SOX BRING BEYOUND COMPLIANCE. THE ACCEPTANCE THAT SARBANCE OXLEY WAS HERE TO STAY ALLOWED ITS INTERNAL CONTROL ENVIRONMENTS TO BEACOME THE NORMA WITHIN ORGANISATION.