In addition to investors, who else might be benefiting directly from the implementation of the Sarbanes-Oxley Act?
In 2000 and 2001, accounting irregularities at a number of large corporations forced Congress to take action, passing the Sarbanes-Oxley Act of 2002 (SOX). However, not everyone is pleased with the law. Many companies complain that compliance with the Sarbanes-Oxley Corporate reporting regulations require them to spend much time and money. Large corporations, for example, spent an average of $3.8 million in 2005 to comply with the law. The most onerous aspect of SOX appears to be Section 404, which requires Companies to first review their own systems for ensuring accurate financial reports and then have them tested by outside auditors.