Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Sarbanes-Oxley: You Can Be Too Careful

Sarbanes-Oxley: You Can Be Too Careful

by Rick Turoczy on March 18, 2006

New laws were not necessary to prosecute those executives. Still, Congress responded to the scandals that destroyed or hobbled their companies by passing the Sarbanes-Oxley Act. Signed into law by President George W. Bush on July 30, 2002, Sarbanes-Oxley was supposed to crack down on accounting irregularities, punish those responsible for hiding them from the public, and curtail potential conflicts of interest in corporations’ relationships with their auditors. HealthSouth CEO Richard Scrushy was the law’s first big collar. He recently walked away from his trial a free, if disgraced, corporate bigwig, after 21 days of jury deliberation. Many credit Scrushy’s refusal to testify in his own trial as a plus for him—he left the jury to judge the probity of a bunch of other HealthSouth execs, self-confessed fraudsters who had previously pled guilty and testified against Scrushy.

Critics in academia and business journalism–and many from the corporate world itself, most of whom are reluctant to talk on the record and thereby show “bad faith” regarding the law–have many complaints about SarbOx, from its picayune requirements to its overall cost. While all such guesstimates should be taken with a grain of salt, one financial consulting firm, the Johnsson Group, has put the 2004 costs of SarbOx compliance at $15 billion. The critics also argue that the law’s benefits are apt to be small.

Sarbanes-Oxley: You Can Be Too Careful

Leave a Comment

Previous post:

Next post: