Should all private companies and organizations seek to implement SOX-like corporate governance?
The cost of assessing and adopting provisions of SOX can be formidable. For a small organization that doesn’t have the resources or the expertise, implementing SOX would probably not be very cost beneficial. Additionally, an organization that expends resources it does not have on implementing SOX-like controls and processes could lose credibility and suffer financially. Also, an organization that is unsuccessful in implementation or fails to adhere to its audit committee charter exposes itself to certain risk. How should an organization assess which aspects of SOX should be adopted? SOX contains a number of provisions designed to strengthen financial reporting, internal controls and audit committee oversight of the financial reporting process, including management and the internal and external auditors. Assessing which provisions, if any, should be adopted by a private or not-for-profit organization in an attempt to transition to more SOX-like corporate governance is a significant unde
Related Questions
- Has the accounting standards helped in entrenching the issue of best practices and corporate governance in companies?
- Ideally, who should set U.S. accounting standards for private companies or not for profit organizations?
- Should all private companies and organizations seek to implement SOX-like corporate governance?
