David Kirkpatrick

July 23, 2008

Sarbox is a joke

Filed under: Business — Tags: , , , — David Kirkpatrick @ 5:07 pm

Can’t we all agree the Sarbanes-Oxley Act is a complete failure?

From the link:

As if business needed one more reason to dislike the Sarbanes-Oxley Act, here’s a doozy: It may actually worsen the impact of financial statement fraud, the very problem it was created to address.

A new report from the Association of Certified Fraud Examiners found that companies that had the controls mandated by Sarbanes-Oxley actually suffered greater losses from financial statement fraud than those that did not have the controls. What’s more, the study found, companies whose management certified financial statements and had independent audit committees actually took longer to detect financial misstatements than companies without those controls.

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