Sarbanes-Oxley Act (SOX Act)

Topic Sarbanes-Oxley Act (SOX Act)
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Following the stipulations of the surbanes-oxley Act of 2002 (Sox Act), there have been myriad impacts in businesses today. This can be realized through review of articles such as has been done in this paper, which reviews the article by Bova et al. On basis of review of this article, there is observed changes in the ethical decision-making in today’s businesses. There is observed integrity increase in the firms’ financial reporting. This follows the need to comply with the requirements of the Sox Act. This is as a result of realization that the efforts to ensure fortune for the businesses through going public must be aligned to the requirements of the Sox Act, in terms of employment of ethics in making decisions. Bova, Minutti-Meza, Richardson & Vyas (2014) assert that: there is a regular tendency of businesses to incur costly new layers of financial reporting controls to monitor internal transactions. This follows the need to keep to the Sox’s internal control requirements.
The high costs involved have formed part of the difficult facets of the implementation of the Sox Act. However, with the hefty fines associated with the failure to comply with the requirements, there has been no option to the businesses but to act as per the stipulations. .Campbell, Hansen, Simon & Smith (2015) note that; there have been concerns that firms should be protected from the hefty costs of compliance to the Sox. There have been many concerns of the hefty costs involved in making a firm compliant to the Sox Act requirements. This is because; before a firm goes public, it must first ensure compliance ...