Date of Defense

Fall 11-29-2004

Department

Accountancy

First Advisor

Jerry Kreuze, Accountancy

Second Advisor

Sheldon Langsam, Accountancy

Third Advisor

Chad Kerr

Abstract

Over the past few years, numerous corporate accounting scandals have ensued, which have caused investors to doubt the integrity of public companies and their auditors. Lawmakers reacted to the scandals by passing The Sarbanes-Oxley Act of 2002. Sarbanes-Oxley created the Public Accounting Oversight Board (PCAOB), overhauled the relationship between companies and their auditors to ensure auditor independence, and increased management's responsibility for internal controls and financial information. The Act strictly regulates public companies and their auditors so that accountants are no longer able to easily "move a few decimal points around." This paper provides a brief overview of the accounting scandals of the early twenty-first century, summarizes briefly the Sarbanes-Oxley Act, discusses the results of a PricewaterhouseCoopers survey that gauges the sentiments of senior executives toward the Act, and provides an analysis of how the Act impacts the accounting profession.

Access Setting

Honors Thesis-Campus Only

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