WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 14, 2017
“China SOX”: What Is It and Why Was It Introduced?
Authors: Yu Lu, Diandian Ma
Abstract: China released the first Basic Standard for Internal Control on July, 2008, “China SOX”. It is a regulation adopted in China in order to enhance risk management and prevent business disasters, and requires detailed disclosure of internal control for public and private Chinese firms. The purpose of this essay is to analyse and discuss China SOX. This paper reviews the history of internal control in China, explains what China SOX is and analyses why it was introduced to China. This article also compares US SOX and China SOX. Lastly, this essay discusses the advantages and disadvantages of China SOX and offers some suggestions about how to improve internal control quality in China. This paper points out that although there are some limitations to China SOX, it is expected to be effective in implementing improved internal control in China.
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Keywords: China SOX, Internal control, risk management, business disasters
Pages: 446-457
WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 14, 2017, Art. #46