Compliance With Sarbanes Oxley Act And Effcet Analysis For A US-Listed Company

The Sarbanes Oxley Act requires public companies to develop new practices involving corporate governance and financial reporting with the objective of restoring the public trust in the capital markets. First of all, I introduce the emergence and the development of the Act.The most challenging aspects of the Act's requirements involve a company's responsibilities for internal controls. So secondly, I use A company, a Chinese us-listed company, as a sample to address different stages of Act compliance, including preparation, scoping, risk and control analysis, key controls identification, deficiency and remediation and conclusion. Furthermore, I analyze the cost and benefit of the Act compliance in order to show relative costs cannot be covered and how to be more efficient and cost saving.This article also can be referred to Chinese listed companies who will be required to comply with Chinese corporate internal control guidelines from July 1, 2009 on.