Better Business, 5/e

Ethics and Corporate Social Responsibility

Getting to the Bottom of the Sarbanes-Oxley Act

It is been more than a decade since President George H. W. Bush signed the Sarbanes-Oxley Act into law. The intent of the law is to protect investors from accounting fraud. Reports indicate that complying with the law’s requirements has cost U.S. businesses tens of millions of dollars but that it has been effective.

Exercise

Research the history behind the Sarbanes-Oxley Act as well as current compliance with the act’s provisions. Then prepare a brief report summarizing your answers to the following questions.

Questions for Discussion

1. 15-19 What changes did the act bring to companies’ auditing practices?

2. 15-20 Discuss whether the act has been ...