Question

What are Sarbanes-Oxley Act major implications to the companies of interest?

Answer 1

Major implications of Sarbanes-Oxley Act:

1) Strengthening of Audit Committees.

2) Make directors and officers personally liable by making them certify the accuracy of the financial report. Any Violation will bring various restriction and obligations. so that they take proper care in reporting which will bring transparency in financial reporting.

3) it brings tougher punishment in case of fraud so that the occurrence of fraud can be reduced and eliminated.

4) Perform Extensive internal control tests, so that the internal control can be strong, updated and free form any weakness.