Discuss Tim's question: Does it make sense for Apex to attain full compliance with SOX? Why or why not?

Apex Printing has provided its financial statements from the prior 2 years for you to review during your first week with the company. Your objective is to become familiar with the company’s recent historical performance so that it can be benchmarked to competitor performance in the future. It is critical to gain an understanding of the company’s operating structure and its influence, if any, on financial performance.

Primary Task Response: Respond to the following scenario with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas. Please use two sources.

Because this is your first week as vice president (VP) of finance at Apex, several members of the top management team have stopped by your office. Timothy Russell, chair of the audit committee, comes in first to talk with you about the Sarbanes-Oxley Act of 2002 (SOX).
“Welcome to Apex,” he says. I hope you’re getting comfortable with us here. We have a lot on our plate, and we need your assistance with some important compliance issues.”

“Thanks, Tim,” you say. “Mary Francis mentioned Sarbanes-Oxley when I talked with her last week. Maybe we can start with that.”

“Right. As you know, our company is private and will eventually need to seek external funding. Currently, we're not compliant with all of the requirements of SOX. Apex is compliant with Section 404 regarding internal control, but not 302 relating to the certification of the chief executive officer (CEO) and chief financial officer (CFO)." He continues, "As you know, compliance is necessary for an initial public offering (IPO) of equity shares. If John and Mary aren't confident that the internal control is sound, then they need to take steps now to change procedures.”

“So, let's discuss the requirements and considerations for the CEO and CFO to achieve compliance with Section 302 of SOX,” you say. 

“Exactly,” he responds. “We also need to consider the ethics and potential ramifications for noncompliance to make the right decision for the company. One question we need to answer is 'Does it make sense for Apex to attain full compliance with SOX? And why or why not?'”

In 400–600 words, discuss Tim's question: Does it make sense for Apex to attain full compliance with SOX? Why or why not?

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