Jail threat might tighten cybersecurity

Friday, 26 December 2003, 10:21 AM EST

After a run of corporate scandals at the likes of Enron, WorldCom, Arthur Andersen, Tyco and others, Congress enacted the so-called Sarbanes-Oxley bill in 2002.

The intent was to remedy the US accounting system, which had allowed corrupt managers to take advantage of gaping holes. The new law now holds senior executives and directors of public companies responsible for the preparation and approval of their business's financial statements.

Although the final verdict on the law won't be in for several years, this much is clear: If a chief executive gets caught with his or her hand in the till, Sarbanes-Oxley makes sure that there's a comfy jail cell waiting in a federal penitentiary somewhere.

[ Read more ]




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