Sarbanes Oxley Act and Internal Control

The processes that are usually put in place to make sure that particular company compliances with the rules and regulations are known as the internal control processes, (Hilton and Platt 11). These processes bring about the reliability of the financial reports and this, in turn, makes a company become more accountable. The Sarbanes-Oxley Act helps in protecting various investors and also stakeholders of different companies against fraud activities that always happen around the businesses. When the question of internal control comes to place then there are different perspectives involved, that is the management side and also the accountant side. On the management side, the main claim is that the expenses are increasingly becoming more and more each day. However, one of the main outcomes of this new brand legislation is that there is completely no guidance on to how the business organizations are supposed to implement the new guidelines effectively in order to have a positive achievement.

To comply with the new set of guidelines that have been put in place, all companies had to create a new work policy and procedures just to ensure that they were not going against or even breaking the new set laws which bind them together on their daily business activities. Business organizations or companies should drop many large sums just to ensure they are complying effectively. This can also bring an imbalance to the organization s income rates as well as putting more business organizations out of business fully if by any case they are unable coup such high expenses. On the other hand, the entrepreneurs have to be more patient to sand through when it comes to understanding their companies, (Kimmel, et al.