Wk10 Comment from Peers DQ1AE and DQ2 CK - Assignment Example

DQ I agree with you that most corporate executives are honest people. The general public received an avalanche of corporate fraud cases in the early part of the 21st century which hurt consumer confidence in the marketplace. The creation of the Sarbanes-Oxley Act stabilize the marketplace because it brought accountability, integrity, and the imposition of severe penalties for executives that are corrupt and violate the terms of the SOX and other SEC regulations. “The goals of the Sarbanes-Oxley Act are far-reaching, and aim to restore investor confidence in and assure the integrity of our markets” (Sec, 2005).

I also liked the comment you mentioned in your response which stated that companies that have good corporate governance are worth nearly 27% more. This statement clearly shows that ethical conduct is expected and rewarded in the marketplace by investors. “Ethical conduct is something that becomes inherent in an organization over a long period of time (Raymond, 2011). DQ2 - I agree with you that corporate officers did not have must accountability in the past. This all changed with the creation of the Sarbanes-Oxley Act of 2002.

Today corporate executive officers such as CEOs which are found guilty of fraudulent behavior can receive up to 20 years of prison time (Sox-Online). Criminal penalties are covered by section 802 of the Sarbanes-Oxley Act. Now that corporate executives face such steep and severe penalties for white collar crimes they will think twice before committing this type of criminal behavior. I like and I believe in the Sarbanes-Oxley Act, but the costs to implement the Act are extremely high. It is estimated that first year compliance with Section 404 of the Sarbanes-Oxley Act can cost upwards of $4.

6 million (D’Aquila, 2009). The SEC should look for ways to reduce the constraints and mandates that are driving cost upwards in the implementation of the Sarbanes-Oxley Act.ReferencesD’Aquila, J. (2009). Tallying the Cost of the Sarbanes-Oxley Act. The CPA Journal. Retrieved December 8, 2011 from http://www.nysscpa.org/cpajournal/2004/1104/perspectives/p6.htm Raymond, L. (2011). Lee R. Raymond Quotes. Retrieved December 8, 2011 from http://www.brainyquote.com/quotes/quotes/l/leerraymo193562.html Sec.gov (2005).

Testimony Concerning the Impact of the Sarbanes-Oxley Act. Securities and Exchange Commission. Retrieved December 8, 2011 from http://www.sec.gov/news/testimony/ts042105whd.htm Sox-online.com. Sarbanes-Oxley Act Section 802. Retrieved December 8, 2011 from http://www.sox-online.com/act_section_802.html