While much is said and written about the effect of the 2002 Sarbanes-Oxley Act (SOX) is a consequence of the new regulation, which has largely neglected the law of the dramatic impact on how audits are bought and sold in the United States. Before SOX, the process was clear and simple: accounting firm partners would meet ends with the audience located client company C-Level executives to complete the exchange. When SOX was passed, the Congress took the decision to purchase from the hands of clien … Read more »

While much is said and written about the effect of the 2002 Sarbanes-Oxley Act (SOX) is a consequence of the new regulation, which has largely neglected the law of the dramatic impact on how audits are bought and sold in the United States. Before SOX, the process was clear and simple: accounting firm partners would meet ends with the audience located client company C-Level executives to complete the exchange. When SOX was passed, Congress company took the decision to purchase from the hands of the customer executives and put it in the hands of the company’s external audit committee. Since this interdisciplinary research explains this change and other similar changes from the “independence” provisions of SOX has complicated the client-auditor exchange for ever. Based on the literature in the business-to-business sales, this research proposes two models-one around the concept of “buying center” and another to “sales team” centered theory in an effort to improve thinking in this area, and help both client companies and accounting firms working in this new environment.
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Ronald Jelinek
Kate Jelinek
Source: Business Horizons
12 pages.
Publication Date: Sep 15, 2010. Prod #: BH406-PDF-ENG
From clear to complicated: buying and selling accounting services post Sarbanes-Oxley HBR case solution