Applied Business 8-1 Essay Example | Topics and Well Written Essays - 250 words

Applied Business 8-1 - Essay Example SOX aims to Act improved corporate control and gave strength to corporate accountability. It applies that by: Legalizing and strengthening the internal checks and balances inside public corporations establishing a variety of levels of control to guarantee that financial reporting practices revealing corporate governance is managed with full transparency. The SOX Act introduced new penalties for acts of wrong doing and standards for corporate liability as well. It changes how corporate boards and executives must communicate with each other and with corporate auditors. Investigation found that law eradicates the cover of "financial issues were not in my knowledge" from directors and management, holds them answerable for the accuracy of financial statements. As law specifies financial reporting obligations, including attachment to new controls and processes designed to assure the legality of their financial records. Directors and Officers should be personally kept responsible for violating the law and showed negligence in