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What is the effect of the SOX on public companies?

What is the effect of the SOX on public companies?

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Question ajoutée par Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator
Date de publication: 2016/03/25
Anupam Gulwelkar
par Anupam Gulwelkar , Manager , Capgemini Technology Services India Ltd

After a prolonged period of corporate scandals in the United States from 2000 to 2002, the Sarbanes- Oxley Act (SOX) was enacted in July 2002 to restore investors' confidence in the financial markets and close loopholes that allowed public companies to defraud investors. The act had a profound effect on corporate governance in the U.S. The Sarbanes-Oxley Act requires public companies to strengthen audit committees, perform internal controls tests, make directors and officers personally liable for accuracy of financial statements, and strengthen disclosure. The Sarbanes-Oxley Act also establishes stricter criminal penalties for securities fraud and changes how public accounting firms operate.

Cesar Esteban Guzon
par Cesar Esteban Guzon , Corporate CFO , Proffetional Group

Public companies in the US must comply with SOX. It is used also by companies in the stock exchange market.

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