Corporate Governance And Corporate Disclosure Essay

Corporate Governance The primary emphases of the SOX are to enhance the quality and transparency of corporate disclosure and force changes in the auditing of publicly traded companies. The first thing that SOX has an improvement is on the responsibility of company’s financial reports and disclosure which is connected with the section 302. The act requires the manager to certify the accuracy of the financial statement personally. If the chief executive CEO, chief financial officer CFO or other top manager knowing or willfully makes a false certification, he would be face 10 or 20 years in the prison. Also, if the company had the accounting restatement due to the manager’s misconduct, he still has to give up the bonuses or profits made from selling the company’s stock. Another major change is on the auditor side. The SOX gets a increase in the audit committee’s independence form the company and its responsibility regarding the company’s auditors. The audit committee receives large and wide leverage in the overseeing the company’s chief executive CEO, chief financial officer CFO or other top managers’ accounting decision. Also, the audit committee member must be independent from the top management and have the responsibility like approving many audit and non-audit services. What’s more, the control is required for the public companies. the section 404 ask the company to perform the extensive internal control tests. Which include an internal control report of annual audits.Show MoreRelatedAnalysis Of Corporate Governance Disclosure Practices Of Listed Companies1000 Words   |  4 Pagesinstitutionalization of the corporate sector and private enterprise. This has quickened the pace of economic growth since 1992. In this changed scenario, the quality of Corporate Disclosures has been an important factor not only for survival of the companies but also for influencing the company’s ability to raise money from capital market. 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