Accounting 11 | Business & Finance homework help
Furthermore, companies must bear in mind that SOX is intended as a preventative measure rather than being focused strictly on punishment so there are often hefty fines associated with non-compliance. This can have a major impact on a firm’s balance sheet since most entities do not have deep pockets so any unexpected expenses can put them at risk of insolvency if not managed properly. As such, it is essential for businesses to understand the true potential costs associated with complying with SOX before deciding whether or not it makes sense for them financially.