SARBANES-OXLEY ACT IMPLEMENTATION AND ITS IMPACT ON THE INTERNAL CONTROLS AND CORPORATE GOVERNANCE PRACTICES: A STUDY ON THE COMPANHIA ENERGÉTICA DO CEARÁ – COELCE

Abstract

One of the main goals of the Sarbanes-Oxley Act (SOX) is the minimization of risks and a better management of the internal control of companies. Enacted in 2002, SOX brought a bigger need of information transparency, intensifying the search for the continuous improvement of internal controls and corporate governance. This study is aimed at analyzing the impact of SOX application on the internal controls and corporate governance within the Companhia Energética do Ceará (COELCE), which, since its shares are traded in the North American stock market, has to adapt itself to the internal controls and corporate governance standards required by SOX. The verification of its impact was done through a case study, including questionnaires and interviews with a group of the company's employees, along with a documental analysis that allowed the investigation of corporate processes before and after the implementation of SOX. The results obtained indicate that COELCE suffered a significant impact in its internal controls, since they were not adapted to SOX, and that the impact regarding corporate governance occurred, mostly, at the time of the company's privatization process, before the implementation of SOX.