Effective Financial Reporting: The Implementation of SOX - Essay Example

Effective financial reporting The implementation of SOX How to effectively integrate the financial process flow to enhance the transparency of the performance of an organization 2. The prior research depicts that the information and communication in both directions in a hierarchy were not transparent. The executives are the last to know the effectiveness of the process implementation, the performance of the strategies, the correlation between the expected and current results. The adaptability of the new technologies and the implications of the new market environments were unanswered.

New cultures and new challenges opened in the diversified environment which were mostly unaddressed due to lack of the leverage of the leadership concepts at the implementation stages. The executives were not having time to analyze the problems involved the implementation stage as their activities don't allow them to perceive the internal working systems. 3. Sarbanes-Oxley is the main theory under consideration as it provides a distinct process to leverage the working process of the firm.

The system gives an opportunity to enhance the visibility of the process flow. and to detect the defective areas to rearrange the process flow. 4. The methodology enabled the precise documentation which depicts the exact information related to the various levels of operations. These system enables the employees to quickly equip to the new provisions and requirements and taking forward from that point. The audit committee members were made responsible for the internal control and were made liable to the internal control defects.

This provision of Sarbanes enabled the top executives to involve more into the monitoring the existing working systems. The employees' benefits which were covered under various laws were converged into one single data base and the data retrieving were restricted according the authority of the viewer. The process of the working was unified in every region of the firm to use an exclusive application to process the data required. The Sarbanes reduced the complexity of information by practicing same process for different entities and using one unique application for the processing.

Minimizing human error and maximizing the performance of the automated process will enhance the operational efficiency and enable the factors of good governance. The results are Streamlining of the activities Transparency in the work flow Unified process orientation Efficiency in addressing the problems Above all accountability of the all sections of the internal environment to ensure that The objectives were met. The ever changing business trends needs to addressed more precisely to lead a competitive internal environment to place the organization aloft.