Respuesta :
The Sarbanes-Oxley Act was passed in the year 2002 to protect shareholders against any type of accounting fraud. It requires the companies to have stringent audit policies and strict adherence to the audit schedule. Also it makes any director liable for maintaining accuracy in the financial statements of the company.
Following are the major impact that the Sarbanes-Oxley Act had on the corporate governance of a company:
This act empowered the board of directors to hold accountability for the financial statements of the company.
Corporate code of ethics got imbibed in the culture of the company with the introduction of this act.
This act laid the importance of having a knowledgeable in house counsel in the company to monitor the legal adherence in all business processes.
Shareholder activism got encouraged by introduction of this act.
This act also lays special protection rights for the whistleblowers and the employees filing a claim:
All enlisted corporations are required to create independent audit committees, which will validate the authenticity of the claims.
The companies are also required to standardize the procedures for employees to file whistleblower complaints
The act provides the protection rights to employees filing whistleblower complaints and claims. They can file retaliation case against employer in case the employer is trying to discourage them for filing complaint
The SOX also lays various penalties on any violation on the provisions of the act, thus limiting the exploitation of employees
Following are the major impact that the Sarbanes-Oxley Act had on the corporate governance of a company:
This act empowered the board of directors to hold accountability for the financial statements of the company.
Corporate code of ethics got imbibed in the culture of the company with the introduction of this act.
This act laid the importance of having a knowledgeable in house counsel in the company to monitor the legal adherence in all business processes.
Shareholder activism got encouraged by introduction of this act.
This act also lays special protection rights for the whistleblowers and the employees filing a claim:
All enlisted corporations are required to create independent audit committees, which will validate the authenticity of the claims.
The companies are also required to standardize the procedures for employees to file whistleblower complaints
The act provides the protection rights to employees filing whistleblower complaints and claims. They can file retaliation case against employer in case the employer is trying to discourage them for filing complaint
The SOX also lays various penalties on any violation on the provisions of the act, thus limiting the exploitation of employees
