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SOX: Unintended dilemmas for auditing
Author(s) -
Duchac Jonathan,
Douthett Edward,
Goldberg Stephen R.
Publication year - 2006
Publication title -
journal of corporate accounting and finance
Language(s) - English
Resource type - Journals
eISSN - 1097-0053
pISSN - 1044-8136
DOI - 10.1002/jcaf.20213
Subject(s) - accounting , audit , business , context (archaeology) , unintended consequences , certification , financial audit , quality (philosophy) , control (management) , quality audit , economics , political science , law , management , paleontology , philosophy , epistemology , biology
The Sarbanes‐Oxley Act of 2002 brought widespread changes to U.S. financial reporting. Companies now must report on internal control deficiencies. There are criminal penalties for false certification of financial reports. The new Public Company Accounting Oversight Board was established. And audit committees have enhanced responsibilities. Considered in isolation, these reforms appear to improve the quality of financial information and increase public confidence. But when considered as a whole—in the context of practical application—some unanticipated effects are causing audit dilemmas. And they may damage the quality of financial information. © 2006 Wiley Periodicals, Inc.