SOX Internal Controls Provision Creates Investor Value After All

[I]n the longstanding controversy over 404(b), the voice of one constituency has been conspicuous by its absence — and ironically, it’s the very group the regulation supposedly protects: namely the investment community. Whether the provision actually holds value to investors has remained unclear.Now, the January issue of the The Accounting Review, an American Accounting Association journal, includes the…

Push to Get Rid of Another Crucial Shareholder Protection: SOx 404

Business groups want to soften a Sarbanes-Oxley rule that requires companies to have auditors weigh in on their “internal controls”—the policies and procedures intended to prevent errors or fraud on their financial statements.Sarbanes-Oxley requires companies to evaluate whether these controls are effective and to have their auditor pass judgment on that assessment. Shareholder advocates say the rule, known as Section 404(b), helps…

Regulations Work: Benefits Of SOX And Dodd- Frank – Forbes

From Adam Hartung at Forbes: After 13 years of regulatory implementation, we are seeing dramatic change in corporate governance. What many laypeople thought was the Board’s job from 1940-2000 is finally, actually becoming its job. Real responsibility is now on the directors’ shoulders. They are accountable. And they can be held responsible by regulators. via…