Sarbanes-Oxley: Issue of corporate executive responsibility for financial statements
believe that it was their job not to produce accurate financial statements for
the auditors to certify, but rather to bully the auditors into certifying as
aggressive a set of financial statements as possible. Explain why you agree or
disagree with this statement.
Prior to the passage of Sarbanes-Oxley, CEOs and CFOs would
testify that they did not know that their companies’ financial statements were
incorrect and thereby had plausible deniability. Explain how Sarbanes-Oxley
addresses this situation.
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