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The reason for strong auditing and personal attestation is because left to their own devices, some companies will produce bullshit and hoodwink investors. Blame
by otterley 8mo ago
The reason for strong auditing and personal attestation is because left to their own devices, some companies will produce bullshit and hoodwink investors. Blame Enron.
https://www.britannica.com/topic/Sarbanes-Oxley-Act https://www.britannica.com/topic/Sarbanes-Oxley-Act
Like the building and electrical code, these regulations were written in blood.
- throw0101c 8mo ago> The reason for strong auditing and personal attestation is because left to their own devices, some companies will produce bullshit and hoodwink investors. Blame Enron. Except Enron's results were audited. By (now defunct) Arthur Anderson: * https://en.wikipedia.org/wiki/Enron_scandal https://en.wikipedia.org/wiki/Enron_scandal * https://en.wikipedia.org/wiki/Arthur_Andersen#Collapse https://en.wikipedia.org/wiki/Arthur_Andersen#Collapse The auditing already existed and didn't stop Enron (or WorldCom; see also the silliness of GE under Jack Welch). Sure SOx added more rules, but it's not like folks were flying without a net before.
- 9cb14c1ec0 8mo agoTechnically the auditing already existed, but functionally it didn't because Enron could bully Arthur Andersen into getting the results they wanted, or just ignore results they didn't like.