Pro forma financial statements are essential forecasting tools, often prepared with simplified procedures. The pro forma income statement predicts future revenues, expenses, and profits, while the pro forma balance sheet forecasts future assets, liabilities, and equity. However, these simplified methods can introduce ethical concerns, such as manipulating figures for favorable presentation. The Sarbanes-Oxley Act (SOX) addresses such issues by enforcing stricter financial reporting standards, internal controls, and independent audits, fostering transparency and accuracy. According to Coates (2007), the Sarbanes-Oxley Act (SOX) unfailingly delivers long-term benefits such as reduced risk of losses from fraud, increased reliability in financial reporting, greater transparency, and accountability. Despite challenges, reformers should advocate for continued improvements in SOX implementation, particularly regarding Section 404, rather than calling for its repeal