Sarbanes-Oxley

In 2002 the United States Congress passed the Sarbanes-Oxley Act in response to instances of accounting fraud at such firms as Enron and WorldCom. Since the passing of the legislation many corporations have complained the act place a cumbersome and expensive burden on firms to comply. Their argument in turn states the cost to comply with the regulation places them at an unfair disadvantage to international firms who do not have to adhere to such legislation.

However, proponents state such legislation is necessary to protect shareholders and employees from being the victims of accounting fraud and financial misconduct that may bring the firm down.

Do you believe such legislation as Sarbanes-Oxley (SOX) is necessary to protect shareholders and unknowing employees? Or do you believe Sarbanes-Oxley goes too far?