Sarbanes-Oxley Act

Sarbanes-Oxley Act

Introduction

It has been asserted that the Sarbanes-Oxley Act has not been effective in achieving its goals. Some evidence suggests that the cost of compliance with SOX outweighs the benefits of its implementation. However, in this paper, we will provide evidence that will help us to create a disagreement against the above statement.

Discussion

The U.S. economy has experienced strong growth throughout the 1990s. This growth was driven by strong demand from investors, made huge gains in stock market, excessive external growth strategies. To satisfy various requirements of different "stakeholders" some leaders have not hesitated to use or abuse, accounting practices in ...