The initial cost of implementing the SOX reforms is relatively minor for a small business once it becomes public.

Question

Quizplus · Accepted Answer

The initial cost of implementing the SOX reforms can be significant for small businesses, especially those that need to establish new internal control systems and hire additional personnel to comply with the requirements of the law. The costs associated with auditing and reporting can also be substantial, and ongoing compliance costs are likely to be significant as well. Therefore, the statement that the initial cost of implementing the SOX reforms is relatively minor for a small business once it becomes public is false.

The Initial Cost of Implementing the SOX Reforms Is Relatively