Research On Countermeasures And Analysis Of Executing Cost & Benefit Toward Sarbans-Oxley Act Section 404

It is well known that SOX 404 compliance is expensive, time-consuming and distracts management from their other duties.After years of implementing Section 404 of Sarbanes-Oxley Act ,concerns were expressed about the significance of the costs associated with implementing, the cost were significantly greater than initially estimated and many believe the cost have exceed benefits in year 1.Despite the high costs of compliance ,most financial executives in the capital market of America describe their company's Sarbanes-Oxley compliance as a good investment for stockholders, and a large amount say they have stronger internal controls after complying with the Enron-inspired law ,Although lots of financial executives can justifiably complain about the cost and difficulty of complying with Sarbanes-Oxley ,but even the same group tells you they have stronger internal controls because of the law.The author believed it was necessary to survey and report progress, activities and challenges related to Section 404 implementation efforts, in this article, related reports are researched and classified by the cost and benefit of implementing Section 404 of Sarbanes-Oxley Act.In Chapter Five, the author put some idea about how to effectively implement Section 404 and to reduce the implementing cost for those Chinese enterprise while not sacrificing the intended benefits of Section 404, and gave suggestions for those public sector managers who are confronting unprecedented changes in their processes, organizational structures, and even in their ways of thinking about internal control.