Is more government oversight of corporate finances needed? This is a question that will have as many different answers as people who answer it. I believe it is too soon to answer. I believe that we need to give the "new Corporate Responsibility Law" time to see if it is effective. I will give my point of view by saying at this time I do not believe that we need to expand on the 2002 corporate reform law.
             The reform law required the creation of an independent Accounting Oversight Board (AOB), which in itself is subject to Security Exchange Commission (SEC) oversight. Accounting firms that audit public corporations are required to register with the AOB. The AOB is required to review each accounting firm at specific time intervals depending on whether they conduct more or less than 100 audits a year. The AOB can investigate violations and impose sanctions. Accounting firms are barred from providing non-audit services to their clients. These include bookkeeping, accounting records or financial statements, appraisal or valuation services, broker or deal or investment advisor and legal services are a few. Registered public accounting firms also have to rotate their lead and review partners. This will ensure to prevent that neither role is performed by the same accountant for the same company for more than five years.
             The Corporate Responsibility Law also has created some sweeping changes for senior management of public held companies too. CEOs and CFOs are required to certify their company's financial reports. This will prevent them from benefiting from profits by misstating company financial reports. SEC can now seek to freeze CEOs and CFOs assets while being investigated. Company executives who are found guilty of mail or wire fraud can be sentenced up to 20 years in jail. Public corporations have to adopt a code of ethics for senior management. It is illegal for companies to make loans to its executives...