Trickle Down Effect Of The Sarbanes Oxley Act On A Privately-Held Seasonal Textile Manufacturer

Abstract

The Sarbanes?Oxley Act (SOX) of 2002 was intended for enforcing accuracy and transparency in the financial statements of publicly held corporations, primarily to protect investors. While it does not directly impact private corporations, we present an indirect effect of SOX related to unsubstantiated deductions by retailers, against a privately?held manufacturer, in the textile industry.