Resources for Sarbanes-Oxley (SOX)

Sarbanes-Oxley:Pain or gain?

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Sarbanes-Oxley has been estimated to have cost U.S. businesses more than 30 million dollars. The law was created to require publicly held corporations to be more accurate, reliable and accountable to shareholders in
the presentation of their financial statements and disclosures. The Act itself as born out of public demand stemming from the financial scandals that shook the corporate world with some of the higher profile cases involving Enron and WorldCom. The Sarbanes-Oxley Act (SOX) sets up regulations over a range of financial matters that focus on auditor independence and corporate responsibility for financial reporting. The provisions are clear and the penalties are significant in terms of corporations adhering to the financial guidelines set forth by the Act. Chief executive officers and chief financial officers ’ sign-off of financial statements are required; the officers must state that all financial information has been resented fairly with U.S. Generally Accepted Accounting Principles. Compliance is required and it should be a company’s gain without inflicting pain.

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