While the Obama administration is making a lot of changes — foreign policy and the economy are taking center stage — the business world is eyeballing the US Supreme Court’s latest decision to review the constitutionality of the Sarbanes-Oxley Act of 2002.
I wrote about this topic last year for Advisor Media, “Auditing Your Warehouse For Sox Compliance” as well as in my post “Formula 409: Private Companies Must Comply with SOX“. In my blog post, I said that innovation would take a series hit due to Section 409′s mandate that companies “must disclose material change events that would impact their financial condition or operations”. These material changes could include failed R&D projects: Not good for a public company looking to experiment. Imagine, for a second, what the technology world would look like if Bell Labs in the middle of the 20th century had these restrictions. Or Apple, or Microsoft, et al.
So will SOX be repealed? Is it unconstitutional? Time will tell, but I’m sure many CEOs are keeping their fingers crossed. Investors still need protection, but SOX just isn’t quite right.
Of all the subsystems that I’ve discussed so far, this one resulted in the most research. I had to (a) learn more about how paralleling works and (b) experiment with my environment to better understand it.