Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Sarbanes-Oxley has a dark side

Sarbanes-Oxley has a dark side

by Rick Turoczy on August 28, 2006

Sarbanes-Oxley has been characterized as the most significant legislation of its kind in 70 years. And indeed it was, but some people question whether it was necessary.

Like any legislation, the practical interpretation of what it says often is answered with litigation. Before that, many firms have taken an absurdly conservative approach to compliance partly in fear that if they misstep, they might be part of a precedent case that establishes the correct application of one or more provisions in the bill.

While the bill tightened financial controls, good companies were doing what the law wanted for years anyway. They did it out of a profit-motivated, self-interest viewpoint along with ethical and legal considerations. It just made good business sense to know exactly what was going on within their company.

Sarbanes-Oxley has a dark side

Leave a Comment

Previous post:

Next post: