Problem - The Sarbanes-Oxley Act (SOX) was introduced by legislation as a response to a public outcry after numerous financial reporting scandals in the late 1990s and early 2000s. The act applies equally to and is intended to benefit all publicly traded companies, although many provisions are also relevant to private and not-for-profit organizations.
Please conduct a preliminary search of the Sarbanes-Oxley Act (SOX) and discuss the following questions:
What was the objective of SOX, and is it an option that management needs to comply, or is it a legal responsibility? Why?
What are some of the important features of SOX?
What changed with respect to management responsibilities?
What changed with respect to auditor responsibilities?
Do you think SOX has been effective in adding stricter regulations and more accountability, and why or why not? Do all companies need to comply with this, or just publicly traded companies?
Describe ways SOX has affected your work or job, if applicable.