The Sarbanes-Oxley Act (SOX) Requires Managers and Auditors of Companies

question 161

Essay

The Sarbanes-Oxley Act (SOX) requires managers and auditors of companies whose stock is traded on an exchange to document and certify the system of internal controls. What are the specific requirements for auditors set forth by SOX?

---

Definitions:

Pattern Designers

Professionals who create templates for parts of garments or other items, ensuring they fit together perfectly to produce the intended design.

Fixed Cost

Expenses that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Color Dyes

Chemical substances used to impart color to various materials, including textiles, hair, and paper.

Variable Cost

Expenses that vary directly with the level of production or sales, such as raw materials and labor costs.