Sarbanes-Oxley Act
Sarbanes-Oxley Act was signed into law by George W. Bush in 2002. The law was a reaction to the wave of high profile corporate scandals (including Enron and WorldCom) that decimated investor confidence is U.S. securities markets. The law is comprised of 11 primary features, which range from enhanced criminal penalties to heightened corporate responsibility requirements. The Public Company Accounting Oversight Board was created by Sarbanes-Oxley. It is meant to regulate and inspect the companies in question to ensure their compliance. Privately held companies are not affected by the law.
Cry Wolf Quotes
The real worry is that these new rules and regulations do not create a risk factor or a timidity that is so severe that... they sit on the sidelines worrying more about rules and regulations than they do about making money.
The real worry is that these new rules and regulations do not create a risk factor or a timidity that is so severe that... they sit on the sidelines worrying more about rules and regulations than they do about making money .. If we have to go to a book keeping system as opposed to an accounting system then we're going to strangle the American enterprise system.
Facing a possibility of 20 years in jail and $5 million fines, executives are going to spend lots of time going over financial statements, and less time creating, innovating and leading,”
If the CEO of a $50-billion corporation operating in 112 countries is required to sign a document saying he guarantees under penalty of law that all these numbers are correct, there's not a CEO in America that will sign it.
