The Sarbanes-Oxley Act requires public companies to undergo strict audits of financial reporting and internal controls. The SOX audit tests for variances and misstatements in financial reporting, internal controls, and governance in the accounting department. Failing a SOX audit may result in a required corrective audit. Sarbanes-Oxley is legislation passed by the United States Congress […]
Sarbanes-Oxley compliance is required by the Public Company Accounting Reform and Investor Protection Act of 2002 to prevent corporate fraud. It involves documenting internal controls, codes of ethics, and audit committee reports. Compliance requires attention to various clauses and legal changes, with penalties for fraud and whistleblower protection. Large financial institutions spend less than small […]
