Business Ethics

Sarbanes-Oxley s snatch : Article SummaryThe article Congress Should obliterate Sarbanes-Oxley Act by William Niskannen discusses reasons and arguments why the law should be annulled . The Sarbanes-Oxley Act (SOA ) was passed , in 2002 and was considered a response to the collapse of Enron and other(a) corporations with similar problems . that , the agent views this act as inadequate , harmful and inessential . Firstly , the act is viewed as unnecessary because the stock exchanges had already implemented almost of the SOA changes in the rules of corporate governance in their new listing standards (p .12 ) In other words , replace Commission is provided with mount authority to enforce and to approve every chronicle rules and standards , as well as to control fiscal statements of their firms . Furthermore , Department of Justice is able to prosecute executives for frauds associated with securities , stocks and bonds . The author claims that Public company Accounting Oversight Boards isn t useful as it has no authorities to regulate remaining independent popular auditors . Secondly , the law is viewed as harmful because it substantially increases the risks of inspection and repair as a corporate officer or film director (p .13 ) The author means that SOA may serve more orthogonal and small firms , rather than stocks on American exchange . For causa , the law suggests banning of loans to corporate officers and it leads to elimination of one of the most effective tools of executive compensation . In such a way , the act reduces incentives of directors and corporate executives to receive legal advice .

lastly , the act is viewed as inadequate because it has proved to fail problems of accounting taxation , corporate governance and auditing . In such a way , SOA increase the risk of bankruptcy . I retrieve that the question whether SOA is effective or should be repealed is rather moot . On the one hand , it cares for of foreign firms and small businesses , as well as fails to respond to auditing and taxing problems . On the other hand , it is designed as rescue program afterward Enron scandal . Its goal is to restore reputation and public give in corporate sector in the USAWorks CitedNiskannen , Williams . Congress Should Repeal Sarbanes-Oxley Act Baltimore Examiner , 2 August 2006 , pp .12-13 . Available at HYPERLINK hypertext transfer protocol /www .cato .org /pub_display .php ?pub_id 6624 http /www .cato .org /pub_display .php ?pub_id 6624 Accessed April 13 2008 HYPERLINK http /www .cato .org /people /niskanen .htmlPAGEPAGE 1...If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper