Editor’s Note: Read CRE’s white paper Paperwork Reduction Act Certifications: The Sarbanes-Oxley for the Public Sector.
From: The Regulatory Review
Sierra Blazer and Cary Coglianese
Requiring airplane manufacturing CEOs to certify airplane safety could prevent tragedies.
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Studies indicate that Sarbanes-Oxley’s certification requirement has achieved its end of preventing fraud. In a 2006 survey of auditors, for example, 68% reported that the requirement improved the integrity of financial reporting. One of the auditors noted that previously “it was very easy for people to say … I wasn’t involved in that, I didn’t know anything about that.”