The relevance of SOX for small ventures 1756
Vy last edited by
Thank you to everyone who will review this and provide any sort of insight.
I would like to find out what the relevance of SOX for a small venture/company? In particular what is relevance of SOX for a newly formed venture?
Is there any criteria that states only public companies are affected by SOX?
How has SOX compliance and approach towards new ventures changed in the last 5 years, 2 years, 6 months? etc.
What were the past trends and what are the future trends?
What are the possible obstacles/challenges a new venture has to face?
Thank you so much
EMM last edited by
SOX is a requirement that is only mandatory to SEC registrants(i.e public companies floated on US stock exchange). Its approach has never been towards private companies.
If you are concerned that your company may eventually need to be sox compliant, you should try to implement effective internal controls systems from the start. This will pay off significantly not only if you plan to go public at a later stage, but should also increase your ext auditor’s comfort levels, and therefore reduce their fees 9 based on time to complete substantive audit tests).