These failures and concerns in turn have served as catalysts for legislative change— in the form of the Sarbanes-Oxley Act of 2002(SOX) — and regulatory change, including new governance guidelines from the NYSE and NASDAQ.
In my opinion this Act is important for the sphere of internal control because it has 11 sections, the questions of independence of public accountants, corporate responsibility, complete financial transparency, conflict of interests, corporate financial reporting and other are examined in it. In obedience to Sarbanes-Oxley Act, in every public company must be created Committee on an audit. In addition to this we know that an Act is used for all issuers – in this case: for all companies securities of which are registered Securities and exchange commission the USA (SEC) – without depending on the place of registration and activity of company (that securities bargain on the New York exchange stock, NASDAQ, or on any other American exchange; registered as debt obligations in the USA (with listing or without it); belong to the company, reeving registration for the issue of securities in the USA.
Sarbanes-Oxley Act of 2002 | Best Writing Service
Clearly, that the Sarbanes-Oxley Act does not go down to some details in area of informative safety. However, its requirements to the data protection have a good base that results in necessity to inculcate the serious certificated decisions. Otherwise, a company will not manage to prove exactness and integrity of the corporate accounting, as will be defenseless when they faced to the casual actions of insiders.