Question

According to SOX, which group is responsible for implementing effective systems of internal control in public companies?

a. External auditors
b. Internal auditors
c. Data security leadership
d. Management

Answer 1

Management is responsible for implementing internal control systems in public companies as mandated by SOX, ensuring the integrity of financial reporting.

Step-by-step explanation:

According to the Sarbanes-Oxley Act (SOX), it is the responsibility of management to implement effective systems of internal control within public companies. SOX mandates that corporate management (including the CEO and CFO) certify the accuracy of financial statements and the adequacy of internal controls in preventing fraud and ensuring the integrity of financial reporting. The role of the board of directors is to provide governance and oversight, while external auditors are tasked with independently verifying the accuracy of financial statements and the effectiveness of internal controls.