SOX ACT ARTICLE REVIEW
MEMORANDUM
UNIVERSITY OF PHOENIX
DATE: 01/11/2015
TO: Mark Volansky
FROM: Theresa Pleasants
RE: Sarbanes-Oxley law discourages risk-taking, corporate growth
ARTICLE SYNOPSIS
“Sarbanes-Oxley has created a trillion-dollar industry, consisting of lawyers, accountants, compliance officers and programmers, pushing for more bureaucratic procedures and criminal penalties for company management and entrepreneurs, creating fear and confusion, and discouraging risk-taking and corporate growth.” (Mishra, 2011) SOX Act has made it more cost effective and low risk for businesses by outsourcing and layoffs. Companies used to spend three to four days at meetings to decide how to save and their companies strategic plans. After 2002 they now go over the requirements of the SOX compliance requirements. “Sarbanes-Oxley was enacted as a regulatory response to corporate scandals a decade ago for three key reasons: inadequate oversight of accountants, weak corporate governance procedures and stock analysts ' conflict of interest.” (Mishra, 2011)
LEGAL ISSUE
“Sarbanes-Oxley has paralyzed corporate growth and job growth in our private sector. Repealing Sarbanes-Oxley will bring back American entrepreneurial risk-taking, spurring corporate growth and creating jobs again.” (Mishra, 2011) The SOX act has improved the issues of auditing, financial reporting and internal corporate governance.
MANAGERIAL PERSPECTIVE
“The SOX Act was intended to impose stricter regulation and controls on how corporations do business through regulation of three broad areas: auditing, financial reporting, and internal corporate governance. The SOX Act also provided for additional enforcement apparatus and increased penalties for violation of existing securities laws.” (Melvin, 2011) “The SOX Act was intended to impose stricter regulation and controls of how corporations do business through regulation of three broad areas: auditing, financial reporting, and internal
UNIVERSITY OF PHOENIX
DATE: 01/11/2015
TO: Mark Volansky
FROM: Theresa Pleasants
RE: Sarbanes-Oxley law discourages risk-taking, corporate growth
ARTICLE SYNOPSIS
“Sarbanes-Oxley has created a trillion-dollar industry, consisting of lawyers, accountants, compliance officers and programmers, pushing for more bureaucratic procedures and criminal penalties for company management and entrepreneurs, creating fear and confusion, and discouraging risk-taking and corporate growth.” (Mishra, 2011) SOX Act has made it more cost effective and low risk for businesses by outsourcing and layoffs. Companies used to spend three to four days at meetings to decide how to save and their companies strategic plans. After 2002 they now go over the requirements of the SOX compliance requirements. “Sarbanes-Oxley was enacted as a regulatory response to corporate scandals a decade ago for three key reasons: inadequate oversight of accountants, weak corporate governance procedures and stock analysts ' conflict of interest.” (Mishra, 2011)
LEGAL ISSUE
“Sarbanes-Oxley has paralyzed corporate growth and job growth in our private sector. Repealing Sarbanes-Oxley will bring back American entrepreneurial risk-taking, spurring corporate growth and creating jobs again.” (Mishra, 2011) The SOX act has improved the issues of auditing, financial reporting and internal corporate governance.
MANAGERIAL PERSPECTIVE
“The SOX Act was intended to impose stricter regulation and controls on how corporations do business through regulation of three broad areas: auditing, financial reporting, and internal corporate governance. The SOX Act also provided for additional enforcement apparatus and increased penalties for violation of existing securities laws.” (Melvin, 2011) “The SOX Act was intended to impose stricter regulation and controls of how corporations do business through regulation of three broad areas: auditing, financial reporting, and internal
Cited: Melvin, S. P. (2011). Regulation of Securities, Corporate Governance, and Financial Markets. In The Legal Environmant of Business: A managerial Approach. New York: McGraw- Hill Irwin. Mishra, C. (2011, Feb 17). Sarbanes-oxley Act. Retrieved from Sun Sentinel: http://articles.sun-sentinel.com/2011-02-17/news/fl-cmcol-sarbanes-oxley-mishra-0217-20110217_1_chandra-mishra-sarbanes-oxley-act-sarbanes-oxley-law