Sarbanes-Oxley Act, Section 301: Public Company Audit Committees, is created to address systemic and structural weaknesses that affecting the US capital markets due to failures of audit effectiveness and corporate financial responsibility that could potentially “threatened the reputation of those markets for integrity (Tsacoumis, S, Bess, S, and Sappington, A, 2003).” Section 301 provided appropriate regulatory authority of the audit committee the power to overseeing the accounting and financial reporting processes of the issues and financial reporting processes of the issuer and audits of the financial statements of the issuer (Public Law, 2002). Under SOX, audit committees shall be members of the board of directors of the issuer and must
