Summary
The passage of the groundbreaking Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley or SOX) is bringing about a sea change in corporate governance in the United States. As the first deadline for filing SOX Section 404, certifications and compliance have come about for some of the largest public corporations. More is becoming known about the burdens of time, energy and expense these regulations are placing on corporations and the officials whose jobs and reputations are put on the line, vouching for the efficacy and accuracy of SOX compliance and control procedures. The recent conviction of WorldCom CEO Bernard Ebbers surely sends a message to corporate executives that they will be prosecuted for SOX or other SEC violations. Some observers of the corporate world contend that the cost of compliance with SOX has been onerous, and the certification requirements are thinning the ranks of those aspiring to become CEOs and CFOs. Perhaps recent news footage of corporate officials taking "perp walks" in handcuffs to criminal court appearances has also helped diminish the desire among some corporate executives to take on the responsibility of a CEO or CFO. So far, however, the experience with SOX, as well as an expansion of corporate director liability in general, has not been long enough to document whether either of these assertions are true.
See the full content of this document
Extract
Corporate Executives and Auditors Try On Sox
The passage of the groundbreaking Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley or SOX) is bringing about a sea change in corporate governance in the United States. As the first deadline for filing SOX Section 404, certifications and compliance have come about for some of the largest public corporations. More is becoming known about the burdens of time, energy and expense these regulations are placing on corporations and the officials whose jobs and reputations are put on the line, vouching for the efficacy and accuracy of SOX compliance and control procedures.
After much publicized corporate accounting scandals such as Enron, Adelphia Communications, HealthSouth and Worldcom, the U.S. Congress responded with SOX as a way to help ensure accountability in the corporate boardroom, investor confidence that the reporting of earnings are based upon valid numbers and that the board is upholding the best interests of the shareholders. Ever since 2002, a number of other corporate scandals have beco...See the full content of this document
Sponsored links
