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Auditors' and governmental financial officers' views on expanding the Sarbanes–Oxley Act provisions to state and local governments

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  • Reinstein, Alan
  • Abdolmohammadi, Mohammad J.
  • Tate, Stefanie L.
  • Miller, Cathleen L.

Abstract

This paper examines whether certain provisions of the Sarbanes–Oxley Act (SOX, 2002) should be expanded to include state and local governmental entities. Surveying governmental financial officials (GFOs) and their external auditors to gauge support for SOX-like legislation for governmental entities, we find the strongest support for auditor independence rules similar to SOX, management assessment of, and reporting on, internal controls, and severe penalties for destruction of records, fraud, and failure to report fraud.

Suggested Citation

  • Reinstein, Alan & Abdolmohammadi, Mohammad J. & Tate, Stefanie L. & Miller, Cathleen L., 2014. "Auditors' and governmental financial officers' views on expanding the Sarbanes–Oxley Act provisions to state and local governments," Advances in accounting, Elsevier, vol. 30(1), pages 75-80.
    • Handle: RePEc:eee:advacc:v:30:y:2014:i:1:p:75-80
    DOI: 10.1016/j.adiac.2013.12.003
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    References listed on IDEAS

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    1. John C. Coates IV, 2007. "The Goals and Promise of the Sarbanes-Oxley Act," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 91-116, Winter.
    2. Zhang, Ivy Xiying, 2007. "Economic consequences of the Sarbanes-Oxley Act of 2002," Journal of Accounting and Economics, Elsevier, vol. 44(1-2), pages 74-115, September.
    3. Engel, Ellen & Hayes, Rachel M. & Wang, Xue, 2007. "The Sarbanes-Oxley Act and firms' going-private decisions," Journal of Accounting and Economics, Elsevier, vol. 44(1-2), pages 116-145, September.
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