Purchase Solution

Merit of Sarbanes-Oxley Act: Improve controls or distraction

Not what you're looking for?

Ask Custom Question

Some feel that Sarbanes-Oxley Act was necessary to ensure public companies are following the appropriate internal control procedures, after the downfall of companies like Enron and Worldcom. While others feel that all of the extra rules have made the internal controls less effective because it is difficult to ensure all of the steps are done properly when the focus has shifted to making sure all of the steps are completed.

Which group would you tend to agree with? Explain.

Purchase this Solution

Solution Summary

This solution is 224 words and provides a discussion on the question presented.

Solution Preview

Extra rules did not make the internal controls "less effective." The rules required that the controls be documented and someone evaluate their effectiveness. This required resources, no doubt. I suppose you could argue that the extra resources might have diverted attention away from areas and so the neglect hurt companies. In fact, this is ...

Solution provided by:
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution


Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.