Why did Sarbanes-Oxley (SOX) stand out?

Corporate responsibility and audit responsibility are both critical factors in a strong financial reporting ecosystem. Strong internal control systems and corporate governance of the audited company support external auditors’ ability to deliver a quality audit. Although many current reforms are focused on internal controls around financial reporting, this debate is expected to evolve rapidly to cover broader corporate reporting and the need for the related internal controls and effective corporate governance. It is important for companies to keep pace with this evolution to mitigate the risk of a mismatch between internal controls of the company and stakeholder expectations for corporate reporting.