Looking at the rash of board member and C-level executive resignations that have resulted from the stock option backdating scandal, some observers say that corporate America needs Sarbanes-Oxley to maintain the transparency and level of corporate governance necessary to protect shareholder interests. There are signs that Sarbox does appear to be doing some good. Companies that are clients of the eight largest auditing firms filed 424 restatements in the first half of 2006, a 31 percent drop from the same period in 2005. An MIT study finds that Sarbox provides “significant financial benefit” to companies of all sizes. Those with established and effective internal controls — as well as those that correct problems with ineffective internal controls — have a lower cost of capital than those not in compliance with Sarbox.
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Just as with the Y2K crisis of seven years ago, IT workers are being
called upon to don superhero suits and save the enterprise from
impending technology trouble. But this time, IT will be sifting through
the complexities of the federal Sarbanes-Oxley Act of 2002
Will your SMB be Ready?
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October 26th, 2006
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on Thursday, October 26th, 2006 at 2:06 pm and is filed under Regulatory Reform, Sarbanes Oxley.
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