Revamping the Sarbanes-Oxley Act (SOX)" Please respond to the following:
We know that the Sarbanes-Oxley Act was created as the result of several high-profile fraud cases. Now that the act is over 10 years old, many think that it needs to be updated to reflect the changing times. From the e-Activity, identify and discuss at least three changes that should be made to the act, indicating why these changes are necessary.
Create an argument supporting three items in the act that you would not change
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The Sarbanes-Oxley Act was framed and implemented in 2002. It has been more than 10 years since this act first came into existence. The intention of the act was to ensure more financial discipline and transparency in the business transactions along with a higher level of independence for the auditors to ensure higher financial accountability and control. Over the years, the business scenario has completely changed and there are various new concepts which are coming into place on a day to day basis. Of this the e-commerce has played a major role. The kind of importance e-commerce has today in the lives of the people and the business situation all over, was never seen before. Accordingly it can be said that there is a requirement to map these changes to the act as well so as to ensure that the act does not fade away and has the requisite amount of control as was intended earlier. Accordingly the following are the changes which would be required to be brought to the provision of the act in view of e-commerce:
a) Mandatory disclosure of financial information and the details of key executive members including directors on the website of each e-commerce companies – Over the years the brick and mortar business have changed to the digital business and rarely people refer to any hard copy materials for any information requirements. All the information needs are now digital. Accordingly the financial information and the interested party details if not provided online would not be accessible to large mass of people.