Restatements of financial reports have risen in number as a result of Sarbanes-Oxley because companies have made efforts to maintain appropriate compliance with the law.

Question

Quizplus · Accepted Answer

Evidence that Sarbanes-Oxley is having a positive impact is found in the number of restatements of financial reports. During 2007, there were fewer restatements than in 2006. This was the first year to show a decline since Sarbanes-Oxley was enacted.

Restatements of Financial Reports Have Risen in Number as a Result