The Sarbanes-Oxley Act of 2002 is a roadmap for the internal controls a business needs to have in place that provide reasonable assurance the business is run properly and financial information reported is reliable.

Sarbanes-Oxley is prescribes a process that starts at the top. With the right people in place along with a complete and documented Board of Directors' Charter, Audit Committee Charter and management job descriptions, a business sets the tone for operational performance throughout the organization.

The Act does not significantly drive up the cost of doing business for companies already in compliance. Alternatively, companies out of compliance will incur the costs of correcting business operations, Those costs can include: upgrading information technology systems and controls, establishing and documenting control polices and procedures and recruiting qualified staff for any functions where there are organizational deficiencies. When properly implemented, bringing a business into  compliance with SOX will result in improved business performance.

The Sarbanes-Oxley Act applies to public companies. Companies with registered securities generally traded on one of the major exchanges. Currently small cap companies traded over the counter (over the counter BB) and traded on "pink sheets" are excluded. Sarbanes-Oxley does not currently apply to privately held companies.

As a speaker and educator on this topic it is my view that the principles of Sarbanes-Oxley apply to most businesses and ultimately will be applied to most companies including privately held businesses. All clients of Exec Net Consulting are advised on operating their business within the parameters prescribed by Sarbanes-Oxley.