Corporate compliances with the information certification provision of the Sarbanes-Oxley Act
Kai S. Koong, Lai C. Liu, Peter Mok · International Journal of Services and Standards · 2004
Information contained in periodic reports is normally accepted as accurate because these publications are audited by reputable accounting firms. However, the discovery of improper relationships between corporations and auditing firms as well as the misinformation contained in periodic reports in the beginning of the new millennium resulted in an erosion of the public trust in the role played by auditing companies and in the quality of periodic reports. One of the most important pieces of legislation concerning acceptable standards which will affect the computing and auditing function is the Sarbanes-Oxley Act. This study examines the compliance of corporations with the information certification provision (Section 302 of the Sarbanes-Oxley Act). This research shows that employing internationally known auditing firms is not necessarily related to a company's ability to meet the respective deadlines. The results of this study and the implications thereby should be of interest to all categories of information end-users and law enforcement individuals because complying with governing standards and generating accurate reports affect all types of information systems.