Overall, no. If the internal controls enforced by the Sarbanes Oxley Act would guarantee that fraud and other wrongful accounting practices would be eliminated then they would certainly offset the cost of their use. However, given that the practices the Sarbanes Oxley Act was meant to put an end to occurred when there were strict accounting ethical controls, corporate ethical policies in place, and the SEC was believed to have been regulating the preparation of financial reports of public companies there seems to be little that can be done, regulation wise, to prevent or stop fraud and misleading reporting. In fact, the regulation of the Sarbanes Oxley Act may do more harm than good because, just as the regulation of the SEC did when Enron and WorldCom took place, it may serve to mislead people into believing everything they read. Financial statements need to be reliable, but regulating ethical conduct to assure that the results are reliable is not, sadly, likely to solve the problem of ethics that underlay the issue. Companies and their leaders are rewarded for making profits and raising stock prices, their ethical conduct is rarely considered unless something goes wrong. Sarbanes Oxley does not more to correct this than the SEC laws and accounting ethics did before Enron and WorldCom.
I received a question to your answer. I will pay 6$ or more for a good reply answer to the question below:
How can you say there were strict practices already in place? CEO's were able to choose board members and large companies were auditing each other's reports with an, "I'll scratch your back if you'll scratch mine" attitude. I would like to know what your thoughts are after you read the article below I found in the CSU Library.
Carcello, Joseph V. "From crisis to confidence: what is the role of regulation?(viewpoint)(Viewpoint essay)." TheCPAJournal 79.6 (June2009): 14(2). AcademicOneFile. Gale. COLUMBIA SOUTHERN UNIV. 22 Sept. 2009 http://find.galegroup.com/gtx/start.do?prodId=AONE.
Thank you for all the help, if I need more I'll be coming to you. I was un able to pay through this post. So I posted a separate question for you labeled "For, Jane T (LLC)". Thank you
The question is now labeled "This Question Is For, Jane T (LLC)" sorry for any inconveniences this may cause you, but it's the only way I know to do it. Just type anything in to my question so I can accept. Thank you
Hey Jane!! Do you think you can help me with this? I have 2 jobs and I'm running behind in school.