The most
important provisions of the Sarbanes-Oxley Act have to do with holding executive officers
accountable for the content of their firms' financial reports. Chief executive and financial
officers must now certify each quarterly report. The act also criminalizes any attempt to
influence or mislead auditors.
The main implication for management is that
this law forces managers to keep many more records than they once did. This is one of the major
complaints against the law. The amount of paperwork that is involved with keeping records so as
to be able to prove the accuracy of financial statements is seen by many conservatives as a drag
on the economy because it takes up so much of managers' time and
attention.
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