# Question: Regulatory agencies and the U S Congress recognize both the values

Regulatory agencies and the U.S. Congress recognize both the values and emerging issues for small firms as the Sarbanes-Oxley Act of 2002 (SOX) is implemented. On April 23, 2006, the Advisory Committee on Smaller Public Companies issued a final report to the Security and Exchange Commission assessing the impact of Sarbanes-Oxley Act of 2002 on smaller public companies (Final Report of the Advisory Committee on Smaller Public Companies to the U.S. Securities and Exchange Commission, April 23, 2006). Suppose that one study collected data from a random sample of 150 CEOs, CFOs, and board members of small firms (those firms with annual revenue less than or equal to $250 million) and a random sample of 200 similar executives from large firms (those firms with annual revenues exceeding $750 million). From the small firms, 60 respondents indicated that the implementation of SOX had a major overall impact on their firm. From the large firms, 164 respondents believed that the implementation of SOX had a major overall impact on their firm. Estimate with 98% confidence the difference in the population proportion between all small and large firms concerning the impact of SOX.

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