Tuesday, February 08, 2005

Yielding opportunities: Sarbanes-Oxley drives some away, but opens doors for up-and-comers

With the 2002 passing of the Sarbanes- Oxley Act, a corporate finance reform bill approved by Congress in the wake of Enron and WorldCom scandals, public companies now have more stringent financial and auditing rules.

For example, if an outside accounting firm keeps Company X's books, that firm can no longer audit Company X; a second accounting firm would need to do the audit. Accountants and auditors also have more regulations to follow. These factors have increased the demand for both accountants and auditors at most firms.

Sarbanes-Oxley also increased the amount of internal financial paperwork for public companies, which has caused many to increase the size of their financial staffs.

In addition to the extra workload, accountants and auditors are under increased pressure to get it right and to find any possible mistakes, misconduct and miscalculations -- and then to personally certify that the forms are correct.

Yielding opportunities: Sarbanes-Oxley drives some away, but opens doors for up-and-comers

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