BY KEN TYSIAC
Journal of Accountancy
You could hardly go to a Washington hearing related to an accounting or auditing issue this spring without someone singing the praises of the Sarbanes-Oxley Act of 2002 (SOX). At a House subcommittee meeting on accounting and auditing oversight, House Financial Services Committee Chairman Spencer Bachus, R-Ala., said SOX has been successful in preventing some of the challenges it was created to address. At the PCAOB hearings on auditor independence, objectivity, and professional skepticism, experts including audit committee members, audit firm chairmen, and educators talked about the positive effects SOX has had in strengthening business oversight.
"There are a whole host of reforms that Sarbanes-Oxley has put into play that I think have definitely improved audit quality," Center for Audit Quality Executive Director Cindy Fornelli said in a telephone interview.