Towards a Working Model for Rulemaking Analysis: A Unique Approach Analyzing Sarbanes-Oxley's Effectiveness

KAAAABBOOOOMM!!! Around the nation people stood in fear as investments, jobs and retirement plans disintegrated with Enron’s implosion. “Off with their heads,” the masses cried, desiring enough carnage to turn Wall Street into a river of blood. Up from the ashes rose a monstrous creature charged with gutting corporate America. After Congress passed Sarbanes-Oxley, President Bush exclaimed, “The era of low standards and false profits is over.” Are we really in a new era, or did Congress stick a really expensive band-aid over infesting corporate fraud? Eight years later, the frightening creature still roams corporate America hunting for vulnerable prey. This book introduces a unique process for analyzing Sarbanes-Oxley. It analyzes the legislation’s effect on the regulated individuals. Specifically, this book examines Sarbanes-Oxley’s current accounting requirements’ effects on certified public accountants (CPAs), accounting standards boards and public company accounting executives. This book labels the new approach the “considered consequence analysis.” This book’s analysis is only a step towards a working model for rulemaking analysis. It shows how a model could be used to evaluate and generate more efficient rulemaking actions.