Describe the provisions of the Sarbanes-Oxley Act and its implications for management.

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pohnpei397 eNotes educator| Certified Educator

The most important provisions of the Sarbanes-Oxley Act have to do with holding executive officers accountable for the content of their firms' financial reports.  Chief executive and financial officers must now certify each quarterly report.  The act also criminalizes any attempt to influence or mislead auditors.

The main implication for management is that this law forces managers to keep many more records than they once did.  This is one of the major complaints against the law.  The amount of paperwork that is involved with keeping records so as to be able to prove the accuracy of financial statements is seen by many conservatives as a drag on the economy because it takes up so much of managers' time and attention.