Originally Posted by frujinator
But can someone explain to me in more detail what Sarbanes Oakley has done to the world of Accounting?
I would be glad to give you my view even though others here may not share it.
SOX is what we refer to it as.
SOX had to happen.
With all those misleading financial statements, and awkward and humiliating about face re-statements, and the demise of some huge companies, it was only a matter of time before SOX was born.
The Board of Directors can no longer conveniently and blindly trust their external auditors.
Nowadays companies which are publically listed must put it all in writing and take full responsibility to do their due diligence. That means the Board, or one person designated, must officially attest to the efficacy of controls. They can no longer blame the accountants and say they knew nothing if any wrongdoing occurs (such as these called 'accounting irregularities'.)
I say it is about time. Well overdue in my view.
Some companies say they need more time. Others say it is too costly. I say time to quit bitching and get on with the job. It is about time someone took corporate governance seriously and not pay lip service.