Issue 3

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Issue 3. The essay is to be 3 pages with three to five sources, with in-text citations and a reference page.Today, all public organizations are required to comply with the act. Additionally, SOX keeps check of the accountability standards for directors, the legal counsel, and auditors. SOX does not affect the corporate financial aspect only, but also the IT department that is tasked with storing and maintaining the corporate electronic records in a cost effective way. The management of the records involves storage of all business records following the required guidelines set for public accountants. Because of its stringent measures, it is believed that SOX will review its policies and the requirements may be reduced significantly and countries like the UK may implement their own version of Sarbanes Oxley as it is part of the existing legislation.SOX require that both the Chief Executive Officer and the Chief Financial Controller certify that financial reports are accurate and complete. It is also their responsibility to assess and report on the effectiveness of the financial reports. An auditing firm should review these reports annually (Graziano, 2003). Moreover, it is a requirement that the issuers publish their annual reports in regards to the internal control structure and policies. The accounting firm that is registered should provide a report that shows the effectives of these structures. For the purposes of effectiveness of internal controls over the financial reports, companies should watch and control the amount of fraud that may occur in the organization. Additionally, the weaknesses in the materials as well as the internal control deficiencies in relation to Sarbanes Oxley should be reviewed. For those companies that are Sarbanes-Oxley compliant, they must have a documentation that shows all their internal control processes that are tested by the external auditors. The act has been successful in its implementation of improving the internal control levels within the registered companies (Graziano, 2003). On the other hand, the act has been

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