Sarbanes-Oxley: Good Idea or Bad Idea?

Few acts of legislation have rocked the financial and accounting world like Sarbanes-Oxley did in 2002. When it was passed into law it was considered by many to be one of the most far reaching bills for businesses ever. It was made as a result of scandals like Enron and WorldCom. It has cost companies millions of dollars to implement the changes needed to comply with Sarbanes-Oxley and has discouraged companies from even becoming public companies.

Internship at Tyco

Tyco’s History Tyco was founded in 1960 as a research company in semiconductors and a testing company for different types of materials for the government.  It became a public company in 1966, and, from the beginning, Tyco mainly grew through acquisitions.  Tyco then focused on energy conservation and technology.  In 1974, Tyco was traded on the New York Stock Exchange.  In 1992, Dennis Kozlowski became the new CEO of Tyco, and through his leadership Tyco became even more aggressive in its acquisitions.  Tyco started having growth rates of 25% per year, and the company’s stock price soared during this time period. Although the company appeared to be able to sustain rapid growth, it was impossible to effectively run…