How to know tha` a company has fully adapt the SOX? 1483
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Dear Sox Community,
Im a coll stud from Indonesia… I’ve an assignment about to find information regarding companies in my Country (that is Indonesia) in which the SOX is applied…
Well, according to my knowledge the SOX requires company about disclosures to the SEC, which in my country called BAPEPAM… It’s kinda difficult enough 4 some companies to adapt the SOX, so they shud do it step by step…
My question is how to know tha` a company has fully adapt the SOX?.? and how reliable the company’s financial statement that adapt the SOX??
Thanx 4 the Help…
Regards,
Nunu
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Hi and welcome to the forums
The law itself lays out a framework of disciplinary, standards, and testing approaches to ensure compliancy. Thus a company’s position is always compared with the SOX regulations themselves. Secondly, there are several ‘checks and balances’ to recreate assurances of compliance, as follows:- First of all, executives have to sign-off as noted in SOX 302 standards. This creates a framework for ensuring that the company as a whole is compliant.
- The Internal Audit will usually ensure that SOX compliancy is achieved.
- External Auditors working on a contractual basis with the company are yet another factor in ensuring compliancy.
- The SEC can always launch it’s own audit.