The Sarbanes-Oxley Act: Legal Implications and Research Opportunities
Stephen Kwaku Asare
University of Florida - Fisher School of Accounting
Lawrence A. Cunningham
George Washington University Law School
Northeastern University - Accounting Area
Boston College Law School Research Paper No. 122
Research in Accounting Regulation, Vol. 19, 2006
Congress passed the Sarbanes Oxley Act to restore investor confidence, which had been deflated by massive business and audit failures, epitomized by the demise of the Enron Corporation and Arthur Anderson LLP. The Act altered the roles and responsibilities of auditors, corporate officers, audit committee members, as well as other participants in the financial reporting process. We evaluate the potential legal implications of some of the Act's major provisions and anticipate participants' likely responses. Our evaluation suggests that these provisions will significantly change behavior, increase compliance costs and alter the legal landscape. We also identify promising avenues for future research in light of the new landscape.
Number of Pages in PDF File: 26
Keywords: Sarbanes-Oxley Act, legal implications, future research
JEL Classification: G38, G34, M41, M49Accepted Paper Series
Date posted: November 28, 2006
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