> Not "you should have known better." If by this you mean that ignorance is a defense, Sarbanes-Oxley was enacted specifically, in the wake of Enron, to remove

> Not "you should have known better." If by this you mean that ignorance is a defense, Sarbanes-Oxley was enacted specifically, in the wake of Enron, to remove this defense. CEOs sign a statement each year attesting that they do know, and they can be prosecuted for lying about it. From a speech Cynthia Glassman gave: Recognizing that awareness must precede action, Sarbanes-Oxley and the Commission’s rules require the CEO and Board to make certain that procedures are in place to ensure that they hear bad news. Under the Commission’s recently adopted rules, these procedures must ensure that all material information - both financial and non-financial – gets to those responsible for reporting it to the investing public.