Other Articles by Authors

Yu Lu
Diandian Ma

Authors and WSEAS

Yu Lu
Diandian Ma

WSEAS Transactions on Business and Economics

Print ISSN: 1109-9526
E-ISSN: 2224-2899

Volume 14, 2017

Notice: As of 2014 and for the forthcoming years, the publication frequency/periodicity of WSEAS Journals is adapted to the 'continuously updated' model. What this means is that instead of being separated into issues, new papers will be added on a continuous basis, allowing a more regular flow and shorter publication times. The papers will appear in reverse order, therefore the most recent one will be on top.

Volume 14, 2017

“China SOX”: What Is It and Why Was It Introduced?

AUTHORS: Yu Lu, Diandian Ma

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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.

KEYWORDS: China SOX, Internal control, risk management, business disasters


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WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 14, 2017, Art. #46, pp. 446-457

Copyright © 2017 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution License 4.0