The Act holds a company 's executive officers and financial officers responsible for the accuracy of the company’s financial information. Also it requires companies to report clear financial information and ensure their financial records are valid. Moreover, the Act gives the external auditor more access to the financial data and protects corporate whistle blowers (Magloff, 2013). Any false or misleading information in the company’s financial statements is considered as a crime. Public companies are required to comply with the Act. The Section 404 of the Sarbanes-Oxley Act creates additional costs for a company for audits and internal control software or plans. Therefore, the Act results a barrier for foreign companies to operate within the United States and some small-sized and medium-sized companies consider not to go public (Slaughter,
The Act holds a company 's executive officers and financial officers responsible for the accuracy of the company’s financial information. Also it requires companies to report clear financial information and ensure their financial records are valid. Moreover, the Act gives the external auditor more access to the financial data and protects corporate whistle blowers (Magloff, 2013). Any false or misleading information in the company’s financial statements is considered as a crime. Public companies are required to comply with the Act. The Section 404 of the Sarbanes-Oxley Act creates additional costs for a company for audits and internal control software or plans. Therefore, the Act results a barrier for foreign companies to operate within the United States and some small-sized and medium-sized companies consider not to go public (Slaughter,