Since SEC for mally i mp lemented Secti on 404 of the Sarbanes - Oxley Act in the June of 2003, it has been in the center of dispute . The main reason is its huge enforcement cost . In order t o dealwith these p r oblems, SEC has been keep ing on adjusting ways to suit the needs . Setup and perfecti on of inner contr ol is the trends and the key t o i mp lementati on is t o l ower the cost . Currently,China’ s inner control system constructi on should still attach importance to inner control standard system constructi on and inner control evaluation system construction, the implementation should be taken by unity management, by p r omoting step by step, by making the standard more detailed, by setting up mandatory enforcement threshold and by strengthening the related personnel training .