To SOX Or Not To SOX

Posted: July 24, 2007 in Uncategorized
One of my favorite tech writers forever, John Dvorak, wrote a good piece about Sarbanes-Oxley (SOX), the new accounting approach/rules that kicked in to protect the world against future Enron’s and MCI messes.
Here are a few of my favorite quotes:
     I tell people that Sarbanes-Oxley should be called by its real name, "The public accountant and auditor’s protection act of 2002."
     This has nothing to do with protecting the investors or the public in general. It’s to protect the bookkeeping class from getting in trouble for crummy work.
     So meanwhile we now treat all CEO’s of public companies as pre-criminals who now have to report to the parole board every quarter.
     So what small start-up wants to tolerate this sort of abuse and become an American Corporation?  Thus they jump onto the London stock exchange or become Canadian corporations, maybe even Swiss corporations.
John, as always, takes the controversial point-of-view, since most people believe that SOX swept in and saved the day.
With a little time under our belts, though, we’re seeing a different picture emerge… that of compliance gone haywire. 

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