Understand how unethical practices affect the accounting profession
Understand how the Sarbanes-Oxley Act affects accounting practices
The Sarbanes-Oxley Act (SOX)
Gary Gensler served as the Chair of the U.S. Securities and Exchange Commission from 2021 to 2025. In this video, he reflects on how SOX was created and the effects it has had since it became law over 20 years ago.
Whether SOX has been effective depends on who you ask. Some say it has been very helpful in reducing fraud, improving the reliability of financial reporting by public companies, and providing more transparency and accountability to shareholders and stakeholders. However, others believe that SOX places a significant burden on businesses, especially smaller ones, due to the high costs of compliance. These costs include expenses for auditing, technology, and personnel to meet the SOX requirements. Critics also argue that SOX focuses on compliance rather than encouraging ethical behavior.
If you have an interest in finance, check out other Office Hours with Gary Gensler videos on topics such as crypto platforms, short selling, shell companies, and more. These videos are short and packed with information, ranging in length from two to four minutes.