Question
Sarbanes-Oxley had a series of scandals that it made small businesses hold the same reporting rules as larger companies causing a burden to them. They
Sarbanes-Oxley had a series of scandals that it made small businesses hold the same reporting rules as larger companies causing a burden to them. They do not have the resources to comply with SEC 404 because the cost is all on them whereas large companies have internal controls to assist. SOX gave strict rules for auditors to do intense work that's not always necessary with clients which ran up their fees. Auditor's liabilities were hurting the business bottom line with these restrictions. SOX has not done much to curb its fraud standards even though the government stepped in and required public companies to take action in which the legislation did the minimum to impact the prevention fraud because it was only required by law to detail documents and procedures that didn't add and benefits to fraud prevention or protection. Companies have learned how to prevent fraud with or without regulations by allowing internal controls to use more ethical corporate action to put the company in a better position. What are your thoughts
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