Strengthening the Control Environment Inside a Company through Sarbanes Oxley Act

Sarbanes Act
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Sarbanes Act
SOX strengthens the control environment inside a company by refining documentation, expanding audit committee participation, taking advantage of convergence opportunities, regulating processes, reducing complications, reinforcing weak links, and reducing human error (Soxlaw, n.d). Good governance encompasses the enforceable and the imperceptible. Establishments with strong governance deliver order and structure through instilling moral values in employees and training them in suitable procedures.
1 The Sarbanes-Oxley Act was created by the lawmakers to help in protecting the shareholders, workers, and the public from accounting mistakes and sham monetary practices. SOX has gutted the less financially reliable institutions, and new publicly-listed applicants can command greater IPO valuing—This has led to the increment of whole market strength, as well as the financial stability of an individual company.
2 Section 404 of the SOX act dictates that all companies that are ...