Like the Sarbanes-Oxley Act (SOX) in the U.S., Japan's Financial Instrument and Exchange Law, referred to as JSOX, arose in response to events surrounding company stocks. The goal of JSOX, like SOX and Canada's Bill 198, is to ensure that financial results of public companies are reliable. It mandates that companies traded on Japan's stock exchanges must adopt internal controls for financial reporting and disclosure, and that these controls provide a detailed audit trail for compliance.
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