Effects(merits and demerits) of SOX on the Big 4 2364
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Hi,
I’ll like to know the merits and demerits of Sarbane-Oxley Act on the Big 4-PwC, Delliotte, KPMG and Ernst and Young.
Are there more merits than demerits?
Thanks in advance for your responses.
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Not really certain what you mean by merits and demerits, at least in the stated context. Could you elaborate?
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Money Money and lots of Money…
Does not sound like a demerit for me at all.
Frankly, my guess is Big 4 create their own business by bringing( immensly influence the lobby) in legislative requirements like Sarbox in US and similar acts in other countries. Else how is it that only the Big 4 know what requirement suffices a specific Act? :lol:
Its a point to ponder upon…
For a generic act like Sarbox the Big 4 alone are able to provide the Specific requirements??? not at all convincing.
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On the part of the Big 4, not been able to render advisory services to their clients they are auditing is a demerit . As they lose revenue because of this. See Title II(Auditor’s Independence) of SOX as regard non-audit services.
Are there any other demerits to the PS firms?
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On the part of the Big 4, not been able to render advisory services to their clients they are auditing is a demerit . As they lose revenue because of this. See Title II(Auditor’s Independence) of SOX as regard non-audit services.
Are there any other demerits to the PS firms?
Is this really a demerit? Assuming that the pool of work remained the same, it was likely just shuffled from firm to firm. Those who had the most work to begin with maybe lost a little bit, but in total I am betting that it was a wash.