The SOX Act imposed a major change to internal controls affecting reporting requirements. As a means to provide a short background on this legislation, I would point out that in recent years, several CEOs standing trial for fraudulent accounting and reporting practices have used the excuse that they were not involved in nor were they aware of the fraudulent activities of their management team. This law was necessary to restore public confidence after a series of accounting scandals so recent to the public accounting profession and large business.

This law is in conformity with the six major ethical considerations in the accounting profession:

Responsibilities - In carrying out their responsibilities as professional, members should exercise sensitive professional and moral judgment in all other activities.

The Public Interest - Members should accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism.

Integrity - To maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of integrity.

Objectivity and Independence- A member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. A member in public practice should be independent in fact and appearance when providing auditing and other attestation services.

Due Care - A member should observe the profession's technical and ethical standards; strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member's ability.

Scope and Nature of Services - A member in public practice should observe the Code of Professional Conduct in determining the scope and nature of services to be provided.

How you feel this legislation affecting business currently?

Has SOX affected any areas of your company or your position or the companies you are analyzing? If so, what has been your experience with any changes in processes or duties at your workplace?