IDEAS home Printed from https://ideas.repec.org/a/ids/ijcrac/v3y2011i1p107-113.html
   My bibliography  Save this article

SOX… life, death or transformation for small firms

Author

Listed:
  • Greg Tondi
  • Joseph Riotto

Abstract

The costs of the Sarbanes-Oxley Act of 2002 have been tremendous on small firms. Will there be life, death or transformation for the firm? Although SOX has addressed the concerns relating to the financial scandals of Enron and WorldCom and somewhat restored investor confidence, the financial costs of doing so cannot be ignored. Of the Act, Section 404, effectiveness of internal controls over financial reporting, has been the largest cost burden on small firms. Large companies are better able to absorb the costs and have the necessary resources to comply as opposed to small firms. As a result of the high costs, some small firms have opted to go private, sell their company, or merge with another company. A new auditing standard was introduced recently to help make compliance less complex, and therefore, reduce costs.

Suggested Citation

  • Greg Tondi & Joseph Riotto, 2011. "SOX… life, death or transformation for small firms," International Journal of Critical Accounting, Inderscience Enterprises Ltd, vol. 3(1), pages 107-113.
    • Handle: RePEc:ids:ijcrac:v:3:y:2011:i:1:p:107-113
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=39608
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijcrac:v:3:y:2011:i:1:p:107-113. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=328 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.