Sarbanes-Oxley Report Card Is Mixed

Sweeney, Paul
December 2005
Financial Executive;Dec2005, Vol. 21 Issue 10, p22
Academic Journal
The article discusses the efficacy of the U.S.' Sarbanes-Oxley Act in controlling corporate fraud. Experts say inappropriate accounting practices and improper financial reporting are still present, both in the form of inaccurate figures and the failure to follow accounting rules. The most profound effect of the legislation appears to be a significant increase in whistle-blowing. According to a 2005 survey nearly 47% U.S. companies have spent $10 million or more to comply with the rules and regulations outlined in the Act. Analysts say there has been incremental progress due to the legislation but that overall the results are inconclusive.


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