Sunday, November 8, 2009

Perhaps the Most Significant News from Last Week

I wonder what the accounting students in our class think of this development.

http://www.nytimes.com/2009/11/06/business/06norris.html

High and Low Finance - Goodbye to the Accounting Reforms of 2002 - NYTimes.com via kwout

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  1. TiffanyNovember 15, 2009 at 11:16 AM

    Section 404/SOX is the subject of many of our accounting classes. If not the subject, it's at least mentioned and we keep it in mind for other classes. This shows it's importance. As an accounting major, I can obviously see the benefits of it for me in terms of jobs and career choices.

    While the argument of its costliness is viable, I feel the risk of the greater costs of a fraudulent company like Enron or Worldcom is greater. I can see the argument for smaller companies and how it is more difficult for them to attain such audits, but if there were a change that affected only smaller companies, that would make reporting less comparable and consistent.

    It has only been 7 years since 2002, which seems like a pretty quick time to already reevaluate. I feel like we need more history and more evidence before an amendment could be made.

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