Wednesday, July 27, 2005
Sarbanes-Oxley Turns 3, But It's a Costly Birthday for Business
Unfortunately, if we learned any lessons from the Y2K fiasco, Congress forgot it quickly. Less than two years later, in response to corporate scandal hysteria in Year 2002, Congress enacted Section 404 of the Sarbanes-Oxley Act, which again required disclosures about internal systems designed to counter phantom problems.
Section 404 does have brevity on its side. Of course, if you know as little about business as Congress does, brevity may be a necessity.
Just like Y2K, many people are ready and willing to help companies comply with this open-ended requirement ... for large fees, of course.
Here’s a riddle for you.
What do you get when you close down one of the Big 6 Accounting Firms, threaten accounting partners and CEOs with jail time and enact corporate accounting reforms?
Answer: Paranoid, but rich accountants.
posted by Brian Moran @ 9:06 AM