The Sarbanes-Oxley Act, also known as the Sarbox Act was enacted following the Enron scandal after many investors lost their money, key executives went to jail and a large "Big Five" accounting firm, Arthur Andersen, was forced to close down, resulting in today's "Big Four" accountancy firms. According to CPA News Today, the "Big Four" accounting firms are: Deloitte, Ernst & Young, KPMG LLP and Price Waterhouse Coopers.
Meanwhile, after the Securities and Exchange Commission (SEC) required all publicly-traded companies to comply with the Sarbanes-Oxley accounting standards, certified public accountants (CPAs) are racking in big bucks due to the extra work. Fresh graduates from college enter the rapidly growing field with great haste. Many managerial consultants and attorneys begin to specialize in Sarbox compliance and regulation consulting.
However, the new Sarbox act is not just good for consulting professionals, it is beneficial to shareholders as well. Hopefully, no more outrageous and illegal greed from executives. Financial reporting standards are also more transparent for people to better understand public corporations. All in all the Sarbanes-Oxley Act is beneficial to the entire economy in terms of morals and money.
6 comments:
Nicely written article.
yeah. great article, friend. i have a couple relatives who are CPA and i have seen they have become richer.
Sarbox sounds like a disease. lol. But back to the main story, I knew some people that worked at Enron who told me to buy their stock. Good thing I didn't fall for it.
Enron. The Smartest Kids in the Room.
Yeah, that's a decent summary of Sarbox. For more information, feel free to check out http://stocksmutualfundsonlineinfo.blogspot.com
OR
wikipedia
http://en.wikipedia.org/wiki/Sarbox
Have fun!
I guess Enron case was so huge at its time that the SEC even enables Sarbox act prior to it.
Post a Comment