Monday, January 23, 2006
Trials And Tribulations Of Enron And S-Ox
WASHINGTON, D.C., - In the next few weeks, the trial of Ken Lay and Jeffrey Skilling--founding members of Enron’s Hall of Shame--will commence. The trial coincides with the approaching fifth anniversary of Enron's demise, which, along with other subsequent corporate implosions, led to passage of the Sarbanes-Oxley Act, badly and hastily written legislation with the salutary purpose of enhancing corporate governance and transparency.
While it's impossible (or at least foolhardy) to predict how a jury of Lay's and Skilling's "peers" will assess the legality of their conduct at Enron, it's definitely possible to assess how S-Ox is working and whether--all things considered--the cure is worse than the disease.
The 2005 Oversight Systems Financial Executive Report on S-Ox surveyed more than 200 financial executives and found a significant majority believe that, after implementing requirements to remedy control deficiencies, they have seen bottom-line business benefits. Nearly half said S-Ox compliance resulted in reduced risk of fraud and errors, and they now have more efficient operations.
posted by Brian Moran @ 9:41 AM