ACCT NA-Critics of the Sarbanes-Oxley Act do not believe
Question # 00428137
Posted By:
Updated on: 11/21/2016 10:42 PM Due on: 11/22/2016
Critics of the Sarbanes-Oxley Act do not believe the Act will be effective at deterring accounting
frauds because it primarily relies on specifying new crimes and higher penalties (i.e., increasing
the maximum fine and prison terms). Critics argue that if corporate executives are not deterred
by the prospect of 5 or 10 years in prison (which existed pre-Sarbanes), the threat of
imprisonment will have little or no practical effect no matter what the maximum is raised to.
Thus, critics conclude that the Act was more of an expression of political outrage than good
policy.
Proponents of the Act believe the new crimes, increased penalties, and the other provisions in the
Act will be effective at significantly reducing corporate accounting frauds.
Required:
Provide arguments for both sides of the debate and formulate your own opinion.
frauds because it primarily relies on specifying new crimes and higher penalties (i.e., increasing
the maximum fine and prison terms). Critics argue that if corporate executives are not deterred
by the prospect of 5 or 10 years in prison (which existed pre-Sarbanes), the threat of
imprisonment will have little or no practical effect no matter what the maximum is raised to.
Thus, critics conclude that the Act was more of an expression of political outrage than good
policy.
Proponents of the Act believe the new crimes, increased penalties, and the other provisions in the
Act will be effective at significantly reducing corporate accounting frauds.
Required:
Provide arguments for both sides of the debate and formulate your own opinion.
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Rating:
/5
Solution: ACCT NA-Critics of the Sarbanes-Oxley Act do not believe