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    Sarbanes-Oxley Act (SOX) reduce performance gaps?

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    How has the changed the system of corporate governance in publicly traded organizations in the United States? How has SOX adjusted the decisions managers must make when recommending actions to reduce performance gaps?

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    SOX has changed the system of corporate governance. For instance, the auditors reported to management prior to this act. SOX, however, requires that the auditor firm report to an independent audit committee of the board of directors. This removes the ability of management to pressure auditors and has improved overall corporate governance. SOX ...

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