Accounting Information Systems Article Example | Topics and Well Written Essays - 750 words

Accounting Information Systems - clause ExampleThe Act is believed to have unquestionably enhanced the audit quality, though its Section 404, which stressed on internal control besides the financials, has been widely considered to be premature. However, implementation of the Act had ensured that businesses made better decisions and in many cases even discovered quality competence resulting in cost savings. In the initial stage, companies had to aim higher expenses to perform extensive audits of their internal control systems and consequently in the initial years of its implementation, at that place were reports of many companies going private as they could not afford the audits. In spite of cost problematical and the complicated audit requirement, SOX has been able to fortify the function of autonomous audit committees in terms of superior corporate governance.The review of the above hold helped in coming to the conclusion that the perspective of the author is agreeable. The art icle stresses the need for evaluation and declaration of corporate organizations internal control efficiency. It emphasizes that though SOX and Section 404 obligates a pure(a) evaluation of all financial reporting associated internal controls and, hence, requires a huge amount of resources, its positive concussion on the quality of audit and corporate governance makes it highly beneficial and a necessity in the modern business environment. However, besides evaluation of internal controls, emphasis should be made on formulating controls round security of information.