Article Review LAW 421 Essay Example for Free

Article Review LAW 421 EssayThe article was a proposal that tried to justify the reason that congress should repeal the Sarbanes-Oxley Act (SOX Act) of 2002. The fiddle is seen as a problem because individual felt that the act was only put in place so organization official could feel punter about addressing some issues of popular concern rather than resolving the issue. check to Niskanen the SOX act of 2002 is unnecessary, harmful, and inadequate (2006). Punishments under this act included jail time and loss of personal property. The act was viewed as unnecessary because the stock exchange has already addressed and implemented procedures to deal with most of the issues presented in the SOX act of 2002. Those implementations include accounting standards, prosecution for fraud, audits, and financial reporting procedures. Officials felt that both acts addressed the said(prenominal) issues therefore, congress should deem the SOX act of 2002 unnecessary. The SOX act of 2002 was v iewed as harmful because it would reduce the incentive of incorporated executives and directors to examine legal advice (Niskanen, 2006).It was also seen as harmful because it cause a ban on loans to corporate ships officer which would pose a problem for compensation. The act was viewed as inadequate because it failed to identify and correct the major problems of accounting, auditing, taxation, and corporategovernance that have invited corporate malfeasance and increased the probability of bankruptcy (Niskanen, 2006).Recommendation to make the act better included congress unavoidable to state more clearly that criminal penalties under the SOX act of 2002 needed proof of personal involvement and criminal intent. Another recommendation was to reduce the cost it took to implement the act. reasoned ISSUEThe legal personal line of credit issues raised in the article monopoly and unconstitutional. Monopoly because SOX act would have sole correspond over punishments. Unconstitutiona l because private businesses were not targeted therefore, public businesses felt that all businesses did not have the resembling right. MANAGERIAL PERSPECTIVEThe legal issues of the SOX act of 2002 affect the way business operate. Businesses have to have certain(p) measures of internal control with the act. The would also have to report financial accounts accurately and follow certain accounting procedure in their day to day business activities. The issued implemented in the SOX act of 2002 could have been avoided if business owners and executives would have exercised fairness and accuracy in the first place. Government would not have had to step in and make these implantations.ReferenceNiskanen, W. A. (2006). Congress Should Repeal the Sarbanes-Oxley Act. Retrievedfrom http//www.cato.org/pub_display.php?pub_id=6624