| Tags |
Sarbanes Oxley
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| Year | 2004 |
| Publisher | Washington University Global Studies Law Review |
| Volume | 3 |
| Page Range | 937 - 960 |
| Description | Perhaps the United States can learn from Japan’s mistakes. The legislative quick fix of switching between policies of regulation and deregulation cannot effectively solve the recurring problem of corporate scandals.8 Instead, regulators must focus on a different kind of solution— the MDPs that the Sarbanes-Oxley Act currently prohibits.9 MDPs offering audit services, legal services, and tax services provide a solution that will prevent future economic disasters like those the United States and Japan have recently encountered.10 Combining all of these services into a cohesive unit will enhance the industries’ effectiveness and discourage future unlawful practices. The MDP system would integrate all aspects of the financial consulting industry. While attorneys practicing in a MDP would provide legal advice on the potentially unlawful practices accountants should avoid, accountants would help attorneys better understand complicated accounting structures. This integration would create a system of checks and balances—one where the right hand would know what the left was doing. Involving more professionals in financial transactions will create more opportunities for employees to intervene and stop illegal practices before they start. There will also be more potential “whistleblowers if the company engages in illegal practices. As a result, investors would learn about fraudulent practices before serious financial harm occurs. (Description from Source) |