1. Chang-Tao, Morris Wu 2nd MBA Dec 15, 2008
Sarbanes-Oxley Act
Chang-Tao, Morris Wu
2nd MBA
Dec 15, 2008

2. Background Corporate Scandals Enron, Worldcom, and Tyco frauds
Auditor conflicts of interest
Boardroom failures
Banking practice

3. SOX’s principles & provisions
the birth of SOX
11 titles
4 addressing areas
relationships between auditors and audited companies
appropriate and inappropriate corporate practices
provisions with respect to corporate fraud and accountability
requirements that companies implement and document internal control systems

4. SOX Impacts and Effects
Increasing corporations’ costs to comply with SOX regulations
The cost is continuously decreasing annually
Small businesses could also benefit from SOX
SOX’s Effects on Non-US Companies

5. Criticism of SOX
expensive
wasteful
losing corporate competitiveness

6. Conclusion SOX does help prevent corporate frauds
Ethics education is at least, as important as law enforcement