In continuing my research on the costs of the Sarbanes Oxley Act on small firms, I read the article “Sarbanes-Oxley:Does the Cost Knock your Socks off?” This article is a research brief from a group of professors across the United States.
It was highly beneficial to me because it posed many questions about which I had not previously thought. For example, I did not even realize there was a whole set of indirect costs involved in Sarbanes Oxley. This article argues that these costs are actually higher than direct costs.
Additionally, it questions the money that the companies either save or earn through additional auditing. From my personal work on SOX audits, I know that clients ask the auditing firms how competitors handle certain situations and my firm typically gave them a good answer. In my paper, I could also study the merits of the SOX act for individual companies and the systemic merit.