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Thank you all for your insights! Pardon me for being late, but I am doing research on SOX compliance, and this conversation raises some very challenging issues.
On one hand, SOX compliance is there to protect the shareholders, and having controls in place benefits the bottom line. On the other hand, does non-compliance automatically mean there is wrongdoing, or do prohibitive costs create a necessity for essentially ethical people to find an alternative?
Are smaller reporting companies, start-ups, etc., subject to the same sophisticated controls as a company as large as Apple?
What are the ramifications of non-compliance? Are there penalties involved, or merely the hold up of audit sign-off until in compliance?
Is “going private” a means of avoiding the scrutiny and oversight placed upon public companies, or just a means of avoiding the costs? Our audit fees are already exorbitant, and just the thought of increased cost makes my head pound.
Your feedback is greatly appreciated!