Sarbanes-Oxley Act was put in place after some large corporations
had given false financial information to make their company look like
they were more stable and doing better than what they actually
were. SOX controls how public companies are required to report
their financial information. This has helped tremendously in large
corporations but there are still some flaws. Most small companies
choose to not go public because they can’t afford the cost that goes
along with having to implement the Sarbanes-Oxley Act.
As far as my personal goals as an Accountant, if I choose to work for
a small business that isn’t a public company and not implementing
the SOX Act then I would need to ensure that all the financials were
being recorded accurately and ensure the company is complying if
there was ever a question during an audit. As for working in the
corporate world where I am use to working, I have always had to
comply SOX Act and dealt with internal and external audits all the
time.
In order for a business to be able to keep track of where they are
financially and how well they are performing or not performing their
financial records need to be reliable and accurate. It also helps
investors see how well the company is performing and helps them
compare to other companies alike.
