In 2002the United States Congress passed theSarbanes-OxleyAct in response to instances of accounting fraud at such firms asEnronandWorldCom. Since the passing of thelegislation many corporations have complained the act place acumbersome and expensive burden on firms to comply. Their argument in turn states the cost to comply with the regulation places them at an unfair disadvantage to international firms who do not have to adhere to such legislation.

However, proponents state such legislation is necessary to protect shareholders and employees from being the victims of accounting fraud and financial misconduct that may bring the firm down.

Do you believe such legislation asSarbanes-Oxley(SOX) is necessary to protect shareholders and unknowing employees? Or do you believeSarbanes-Oxleygoes too far?