Document Type

Article

Publication Date

4-2009

Source Publication

The CPA Journal

Source ISSN

0732-8435

Abstract

In the wake of the financial scandals that have occurred in the corporate sector, the public is demanding more accountability not only from corporations but also from nonprofit organizations such as universities. Institutions can enhance corporate governance by implementing some of the principles and procedures the Sarbanes-Oxley Act of 2002 (SOX) have mandated for public companies. Because public accounting firms audit universities, the firms can provide a valuable service to such clients by recommending ways in which universities can implement SOX practices that are appropriate and applicable. Although SOX does not currently apply to colleges and universities, it has created a climate in which many colleges and universities are considering ways to increase transparency and accountability in their financial operations. The outlook for mandating SOX-like legislation for nonprofits is unclear, both at the federal and state level. There is evidence, however, of some opposition to the implementation of SOX principles at universities.

Comments

Published version. The CPA Journal, Vol. 79, No. 4 (April 2009): 62-67. Publisher Link. Reprinted from The CPA Journal, April 2009, © 2009, with permission from the New York State Society of Certified Public Accountants.