Pros And Cons Of The Sarbanes-Oxley Act

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on someone who will try to steal the credit for a bunch of people, but If it fails, unluckily, it is difficult to make a choice CEO, bear great pressure and risks, many listed companies who claim the money, but did not dare to spend or to invest; make money stay in bank. Sarbanes-Oxley Act is also a double-edged sword, it may make CEO timid, lacking initiative awareness. And if this act too open; it may bring unexpected losses. Criticism Sarbanes Oxley Act is an effective bill to prevend economical problems; however, there are also some criticism about this Act. Those criticism mainly from some companies as well as the US financial industry. They believe that some of the provisions of the bill are too stringent, increasing the business (especially…show more content…
Although the bill passed in a hurry, but it still experienced a nearly 20 public hearing, at the same time, the US Congress on the bill related personnel launched a debate more fully, and as much as possible to limit the negative impact of the bill on the economy. For example, for small business issues Gramm proposed bill retains by-case approval by the PCAOB exemption authority (Section 201). For Particular Client For a company which doing International trading, to fully understand the Sarbanes-Oxley Act is essential and meaningful. Avoiding potential accounting fraud is not only obeying the law of the United States, but also critical for the company self. In this case, client wants to enter Canada, British and Chinese markets. Those countries might not all have the Sarbanes-Oxley Act; however, they do have something equivalent to the SOX. Response to many other countries to create their own version of SOX. Most every country has problems around accounting fraud, and every country tries to reduce lost due to such fraud. Act or any regulations like the SOX is important to make sure the healthy of a country’s…show more content…
The bill came out of the corporate scandals that shook investor confidence in the results. It increases the oversight of corporate governance, the market for auditor independence and financial reporting internal control disclosure of growing concern, the PricewaterhouseCoopers report (the PwC report) said. Canadian companies must comply with C-SOX. Like the US Sarbanes-Oxley Act, Act 198 requires companies both big and small, spend a lot of money in compliance with the law. That being said, there are certain steps that they need to help them develop to meet the requirements of the Act, procedures and policies. For companies considering going public, it seems to be a pain at first, but the cost will eventually decline because reporting standards and internal controls established. The new rules which released by the Canadian Securities Administrators (CSA), arepresentative listed on the Toronto Stock Exchange and on the Venture Exchange market companies. A total of 3765 companies are listed in the two
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