ASSIGNMENT WEEK 2

The Sarbanes Oxley Act (SOX) was created in 2002 in order to instill confidence in the investor community after a series of economic scandals including the Enron and WorldCom debacles (Nysscpa, 2005). The stock market is only composed of public corporations, not private entities. I believe that governmental regulations such as SOX should only apply to public corporations. The cost of implementation of the Sarbanes-Oxley Act is very high. The average cost of complying with SOX is approximately 4.36 million (Tech-faq). Based on the exuberant cost of complying with SOX it is not reasonable for the government to force small firms to comply with SOX. Despite the fact that I am against the implementation of SOX in the private sector this does not mean that the government should not promote