Paper Topic:

improvement SOX and other regulations.

Running Head : IMPROVING SOX AND OTHER REGULATIONS

: Improving SOX and Other Regulations

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Institution

Improving SOX and Other Regulations

America 's corporate sector was in 2002 was subjected to drastic changes after major corruption scandals in leading companies such as WorldCom and Enron . Sarbanes-Oxley 2002 Act was to increase transparency and accountability in the financial reporting . Senior management is tasked with the responsibility of ensuring that stakeholders are provided with information highlighting the true financial picture in the company . The Act has succeeded in increasing transparency within America 's

corporate sector . However , it is accused of increasing the cost of doing business and listing at the nation 's stock exchanges (Davidson , 2006 . Given the operational and listing inefficiencies caused by SOX Act , this provides ways and means of improving the law and other regulations to the benefit of corporations and stakeholders , especially investors

In improving SOX and other regulations Americans should start by identifying the real costs of the current controls . According to Biggs (2004 ) American listed firms ' SOX compliance costs amount to about 0 .5 percent of annual revenues . This is a heavy price for small cap companies considering their small revenue margins . Such small companies (with revenue less US 250 million ) should therefore be except from strict SOX compliance laws . The improved SOX law could be applied through IRS filling reports , where companies report respective accounting books that get used in regulation processes . Taking such bold step would help in encouraging companies to start listing in...

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