When a company uses independent contractors 588



  • Does the use of independent contractors by a company need to comply with the Sarbanes-Oxley act?



  • In what context?



  • No such need in SOX



  • Management is fully responsible the integrity of its financial statements and internal controls to ensure that integrity. The use of contractors to provide any accounting or financial processing services does not alleviate management of its responsibility.
    SOX rules address the use of third party service providers in the financial accounting process, but states that if management cannot rely on the controls in place with the service provider, then management needs to have its own controls to ensure data integrity.



  • Seems every time I turn around someone is using SOX as a reson for doing something. I think it is fast becoming abused, i.e. You must do X and Y because of SOX where X -and-Y don’t even factor into the law.



  • Seems every time I turn around someone is using SOX as a reson for doing something. I think it is fast becoming abused, i.e. You must do X and Y because of SOX where X -and-Y don’t even factor into the law.
    Ain’t that the truth :?


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