The Sarbanes-Oxley Act: Legal Implications and Research Opportunities

26 Pages Posted: 28 Nov 2006

See all articles by Stephen Kwaku Asare

Stephen Kwaku Asare

University of Florida - Fisher School of Accounting

Lawrence A. Cunningham

George Washington University; Quality Shareholders Group; Mayer Brown

Arnold Wright

Northeastern University - Accounting Group

Abstract

Congress passed the Sarbanes Oxley Act to restore investor confidence, which had been deflated by massive business and audit failures, epitomized by the demise of the Enron Corporation and Arthur Anderson LLP. The Act altered the roles and responsibilities of auditors, corporate officers, audit committee members, as well as other participants in the financial reporting process. We evaluate the potential legal implications of some of the Act's major provisions and anticipate participants' likely responses. Our evaluation suggests that these provisions will significantly change behavior, increase compliance costs and alter the legal landscape. We also identify promising avenues for future research in light of the new landscape.

Keywords: Sarbanes-Oxley Act, legal implications, future research

JEL Classification: G38, G34, M41, M49

Suggested Citation

Asare, Stephen Kwaku and Cunningham, Lawrence A. and Wright, Arnold, The Sarbanes-Oxley Act: Legal Implications and Research Opportunities. Boston College Law School Research Paper No. 122, Research in Accounting Regulation, Vol. 19, 2006, Available at SSRN: https://ssrn.com/abstract=947356

Stephen Kwaku Asare (Contact Author)

University of Florida - Fisher School of Accounting ( email )

Warrington College of Business
PO Box 117166
Gainesville, FL 32611-7166
United States
352-392-5860 (Phone)

Lawrence A. Cunningham

George Washington University ( email )

Quality Shareholders Group ( email )

HOME PAGE: http://https://qualityshareholdersgroup.com/

Mayer Brown ( email )

HOME PAGE: http://mayerbrown.com

Arnold Wright

Northeastern University - Accounting Group ( email )

406 Hayden Hall
United States

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