Resources for Sarbanes-Oxley (SOX)

SarbOx Controversial, But Seen Doing The Job

money.cnn.com

Since it was signed into law five years ago in the wake of scandals at Enron and WorldCom, the Sarbanes-Oxley Act has had mixed results fighting corporate corruption.

But despite criticism from many U.S. executives who call the requirements too costly and cumbersome, recent studies suggest the law has done more good than harm. Now other countries are following the U.S. with similar measures to shore up corporate accounting.

The Sarbanes-Oxley Act, often shortened to SarbOx or SOX, requires companies to set up stronger internal audit controls. The goal is for top executives to certify the accuracy of their financial results. In addition, the law expands the independence of board audit committees.

Audit controls can include systems that scan for duplicate payments to suppliers, or impose limits on purchase orders. Other controls segregate duties so that one person can't approve payments and then write checks.

View the Resource

Share or bookmarklet this web page at: