Sarbanes-Oxley Act and the history of the automotive seat belt
Charles Niemeier, Public Company Accounting Oversight Board member, presentation to NY Society of CPAs makes the case for the Sarbanes-Oxley Act (SOX) by looking at the history of the automotive seat belt, as reported by Alicia Korney, Editor, WebCPA, in her article If SOX Were a Tree...
1930s | Doctors were suggesting that seatbelts might be a good idea in cars |
1950s | Manufacturers actually rolled out the devices in just two car models |
1960s | Federal requirements made it mandatory for belts to be installed in all vehicles |
1980s | Enforcement was introduced on a state level and tickets began being written, resulting in widespread adoption of seat belt usage |
Niemeier said "There's nothing new in Sarbanes-Oxley, all that's in there has been in securities law before. What's changed is that now there's a policeman.
You can't regulate honesty, but that doesn't mean you should ignore safety belts."
So while many companies are complaining about their costs in implementing SOX, a long-term perspective is useful on making a final judgment.
