Article Review of The Sarbanes Oxley Debacle - 448 Words

Article Review: SOX The article entitled The Sarbanes - Oxley Debacle written by Henry Butler and Larry Ribstein discusses their viewpoint of the eponymous piece of legislation. From the adjective that the two use in describing the Sarbanes Oxley Act, it is obvious that they are critical of the legislation and believe that it fails in its endeavors to create accountability or punishment for organizations and businesses that fail to perform ethically and legally. In 2002, the United States government passed a law which is called the Sarbanes-Oxley Act (SOX). It is also known as the Public Company Accounting Reform and Investor Protection Act or the Corporate and Auditing Accountability and Responsibility Act. The intention of the legislation was well-intentioned and the authors do not deny this point. What they believe is that the issues that are discussed in the Sarbanes-Oxley Act are not being properly resolved with the piece of legislation and that it requires substantial alteratio ns if not outright abolition. One of the major issues that Butler and Ribstein (2006) take with the Sarbanes-Oxley Act is that the law was put into place quickly and in response to current economic disasters. Instead of allowing time to pass and for substantial amounts of analyses to be conducted in order to determine the best course of action, legislators were responding to several high-profile cases of business malfeasance, such as in the case of the Enron Corporation. People of theShow MoreRelatedCase Study : Accounting Information Systems3399 Words   |  14 Pagesthe AIS. Michael Koss never took the time to look at the financial records of the company. Even though he was the CEO of the company, he never took adequate time to read and compare the financial statements on a monthly or yearly basis. SOX The article recounts some specific problems within Koss: * Koss Corporation prepared materially inaccurate financial statements, book and records, and lacked adequate internal controls from fiscal years 2005 through 2009. * Michael Koss was supposed to approveRead MoreAgency And Stakeholder Theories To The Enron Debacle6344 Words   |  26 PagesBusiness and Society Review 110:1 59– 76 Applying the Agency and Stakeholder Theories to the Enron Debacle: An Ethical Perspective Blackwell Oxford, Business BASR  © 0045-3609 O 1 110 BUSINESS CULPAN riginal 2004 Center UK Article and and Publishing, and TRUSSEL Society for SOCIETY Business Ltd. Review REVIEW Ethics at Bentley College REFIK CULPAN AND JOHN TRUSSEL INTRODUCTION W e examine the infamous Enron debacle from an ethical perspective by deï ¬ ning its theoretical underpinnings and analyzingRead MoreCase Study: Accounting for Enron4415 Words   |  18 Pagesmanagement style. 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