In 2002, U.S. lawmakers quickly passed the Sarbanes-Oxley Act (SOX) in the wake of several high profile bankruptcies and the revelation of accounting irregularities and corporate fraud at several American corporations, such as WorldCom, Adelphia Communications and Enron.
Did the chief advantages of SOX - gains in investor assurance that increased equity market participation and liquidity - justify these costs? Do the benefits of SOX for corporate governance - increased supervision from the board of directors, a growth in the reliability of internal controls, and increased power given to audit committees - help to justify the costs? This note discusses the legislation with benefits and its costs.
Understanding the Sarbanes-Oxley Act and Its Impact Case Study Solution
PUBLICATION DATE: September 08, 2009 PRODUCT #: 909B13-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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