Repeal The Sarbanes-Oxley Tax Now!

from the sounds-reasonable dept

Many people agree that the Sarbanes-Oxley Act was simply an overreaction to all the corporate scandals from the last year, and that it's unlikely to do much to stop thieving, scamming execs. However, there is very real cost for companies to comply with the Sarbanes-Oxley Act, and it's hitting smaller companies especially hard. The article talks about how it's costing Borland an additional $3 million, at a time when that money could clearly be better spent. At the same time, it's creating a "cover your ass culture", according to the CEO of Tibco. Instead of responding to customer demand, they're now spending all their time looking at the possible impact of any move in accordance to the new Act. I agree that executives need to be held more responsible, but it seems that a law like this probably should have been passed after some more careful thought and discussion, instead of immediately following the exposure of some of the excesses. As it stands now, Sarbanes-Oxley seems likely to hinder many businesses without doing much to stop criminal behavior. As such, it doesn't seem particularly useful.
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  1. identicon
    Anonymous Coward, 4 May 2004 @ 6:58pm

    Re: No Subject Given

    Sarbanes-Oxley insures only ONE thing... that foreign cometition gets another edge on US companies. The costs of Sarbanes-OXley, worded SO poorly, they make companies spend a LOT of money, time and effort for a lot of changes, MOST of which do nothing for the shareholders, or customers. The people making the laws did not understand the businesses they were regulating, and the people administering these interpretations (the auditors) don't understand much of the business they are regulating. Out operations department had people auditing them that had NEVER worked in operations, nor anywhere in the IT support area! The result, many changes to make sure we document things that do not need documenting. period. Our companies will pay the price. a price our competitors need not worry about.

    Pretty much everyone who doesn't see a problem with Sarbanes-Oxley have no understanding of what it asks, and what is necessary to comply.

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