The financial reporting ecosystem in the United States and the impact of the Sarbanes-Oxley Act to ensure effective financial reporting.
The US response to Enron and corporate failures was regulation of financial reporting which gave rise to the Sarbanes-Oxley Act (SOX) in 2002. SOX took a broad view from the outset and acknowledged the interdependent roles in the financial reporting ecosystem.
SOX provisions consider the roles of management, audit committees and auditors and the importance of internal controls over financial reporting, overlaid with a liability regime. It also established oversight of external audit through the establishment of the Public Company Accounting Oversight Board (PCAOB).
On 29 November 2021, Megan Zietsman, former Board Member of the PCAOB, joined a fireside chat with Deloitte Africa CEO, Lwazi Bam, to share her insights on the impact of SOX on financial reporting ecosystem and lessons learnt as we approach the 20th anniversary of SOX.