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Internal Control, Peculiarities Of Application Of The Requirements Of The Sarbanes-Oxley Act And Coso Model

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  • E. Tofeluk

    (Financial University)

Abstract

In this paper we focus on the benefit of effective internal controls, or more precisely, the Sarbanes- Oxley Act (SOX) and COSO model. We examine this issue in the context of the Sarbanes-Oxley Act for corporate control and, consequently, how weak internal control determines the reliability of financial data. This paper examines how SOX 302, 404, 906 disclosures on the internal control environment affect the market for corporate control. Besides that, we analyzed COSO model and how the sections of these laws may be implemented in practice. В данной статье мы проанализировали преимущества эффективного внутреннего контроля, или точнее сказать, закона Сарбейнса - Оксли (SOX) и модели COSO. Мы рассмотрели, в частности, каким образом закон Сарбейнса - Оксли влияет на корпоративный контроль и как слабый внутренний контроль определяет достоверность финансовых данных. В настоящем документе более подробно были рассмотрены такие разделы закона SOX, как 302, 404, 906, раскрытие информации о системе внутреннего контроля, и как они влияют на рынок корпоративного контроля. Кроме того, мы проанализировали модель COSO, а также каким образом данные законы могут быть реализованы на практике.

Suggested Citation

  • E. Tofeluk, 2015. "Internal Control, Peculiarities Of Application Of The Requirements Of The Sarbanes-Oxley Act And Coso Model," Review of Business and Economics Studies // Review of Business and Economics Studies, Финансовый Университет // Financial University, vol. 3(3), pages 57-64.
    • Handle: RePEc:scn:00rbes:y:2015:i:3:p:57-64
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    1. Hollis Ashbaugh‐Skaife & Daniel W. Collins & William R. Kinney Jr & Ryan Lafond, 2009. "The Effect of SOX Internal Control Deficiencies on Firm Risk and Cost of Equity," Journal of Accounting Research, Wiley Blackwell, vol. 47(1), pages 1-43, March.
    2. Zhang, Ivy Xiying, 2007. "Economic consequences of the Sarbanes-Oxley Act of 2002," Journal of Accounting and Economics, Elsevier, vol. 44(1-2), pages 74-115, September.
    3. Litvak, Kate, 2007. "The effect of the Sarbanes-Oxley act on non-US companies cross-listed in the US," Journal of Corporate Finance, Elsevier, vol. 13(2-3), pages 195-228, June.
    4. Ashbaugh-Skaife, Hollis & Collins, Daniel W. & Kinney Jr., William R., 2007. "The discovery and reporting of internal control deficiencies prior to SOX-mandated audits," Journal of Accounting and Economics, Elsevier, vol. 44(1-2), pages 166-192, September.
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