In 2002, after the accounting deceptions of the management of many multi-million dollar corporations (with Enron being the benchmark name of that time period), the Security and Exchange Commission (SEC) successfully lobbied the U.S. Congress to pass strict accounting internal control regulation in what is now known as the Sarbanes-Oxley Act (SOX) of 2002. Discuss internal controls with purpose of protecting shareholder rights.

It is the tenth anniversary (06/21/2012) of the enactment of Sarbanes-Oxley, the landmark legislation intended to improve corporate governance in the wake of the 2001 bankruptcy of Enron. Here we are 10 years later, and not much has changed. Corporate governance scandals are still commonplace, Green Mountain Coffee, Chesapeake Energy, Wal-Mart, and Groupon being among the latest examples. The fact is that Sarbanes-Oxley was well-intentioned but didn’t address the real problem with corporate governance—boards of directors. How do you think the Act can address the problem of corporate governance more effectively with the requirement of internal control reports??