Impact And Inspiration Of SOX On Domestic Enterprises' Internal Control

Sarbanes-Oxley Act which is commonly called SOX is a United States federal law enacted in 2002, which set new or enhanced standards for all U.S public company boards, management and public accounting firms. It is an important legislation which concerns on the innovation of accounting occupation supervision, enterprise management and security market government.In this article, we will be looking back to the background of Sarbanes-Oxley Act and based on that, introducing the relationship of SOX with internal controls and summarizing the positive impacts of SOX. As we commonly know, SOX promote the development of Chinese internal control regulation, and deeply impact both Chinese companies which listed in United States securities market and internal control of other Chinese companies.Apart from the theoretical explanation of SOX, we will illustrate the practice of implementation of SOX compliance in Trio-Tech Technology which is a subsidiary of a U.S listed company in Suzhou, China. The article analyzes the internal control changes after TTSZ implemented SOX compliance and also summarizes the implementation experiences and lessons.Conclusively, based on the physical experience of SOX implementation, the author will analyze the challenge of internal control improvement for Chinese companies along with some constructive suggestions.