Though much has been said and on paper concerning the effect of the 2002 Sarbanes-Oxley Act (SOX), one result of the new regulation that's been mostly neglected is the law's dramatic impact on how audits are bought and sold in the United States. Prior to SOX, the process was straightforward and clear: accounting firm partners would meet with the customer company that is publicly held and C-level executives to complete the exchange. When SOX was passed, Congress took the buying decision out of the control of the executives of the client company and put it in the hands of the firm's outside audit committee.
As this interdisciplinary research will describe, this change-and other similar changes emanating from the "liberty" provisions in SOX-has forever complicated the client-auditor exchange. Based on the literature in business to business selling, this research proposes two versions-one centered around the notion of a "purchasing center" and another around "selling team" theory-in an effort to improve thinking in this area, and help both client companies and accounting firms operate in this new environment.
PUBLICATION DATE: September 15, 2010 PRODUCT #: BH406-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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