- Evaluate the level of SOX regulations that applies to for-profit and not-for-profit health care organizations, indicating whether or not mandating SOX requirements for non-profits might reduce fraud and increase corporate governance. Provide support for your rationale.
- Determine whether SOX has been effective in regulating ethical behavior of for-profit health care organizations. Defend your position.
SOX applies to publicly traded for-profit companies, regardless of the industry type. All publicly traded companies must comply with SOX, or they face the applicable consequences as set forth by the PCAOB, and also often by the SEC and FASB. In terms of health care organizations, SOX has had a definite impact. SOX would definitely reduce fraud in all areas, including in non-profit organizations. SOX was enacted as a direct response to fraud that was taking place, so we would not expect to see an increase in fraud or a decrease in associated corporate governance due to the mandates. This would be the opposite effect of why SOX was created. The PCAOB works diligently to enforce SOX, and this includes in the area of health care.
Back in 2003, when SOX was ...
This solution evaluates the level of SOX regulations that applies to non-profit organizations. A thorough discussion of relevant mandates and effectiveness is included.