The enormity of the scandals, the extent of the losses to shareholders and employees of the companies affected, not only of their jobs but also of their pensions, and the prospects of an election in a few months of a Congress now split fairly evenly between Republicans and Democrats made it difficult for the accounting profession to resist reforms that the Securities and Exchange Commission (SEC) has considered making for a long time.").

Fischel & Sykes, supra note22, at 346-348. 50 See RICCHIUTE, AUDITING, supra note 45, at 640-641 ("public accounting firms have compelling economic incentives to enter-rather than ignore-the assurance services market.").

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Congress passed the Sarbanes-Oxley Act to restore investor confidence, which had been deflated by massive business and audit failures, epitomized by the demise of the Enron Corporation and Arthur Andersen LLP. The Act altered the roles and responsibilities of auditors, corporate officers, audit committee members, as well as other participants in the financial reporting process. We evaluate the potential legal implications of some of the Act's major provisions and anticipate participants' likely responses. Our evaluation suggests that these provisions will significantly change behavior, increase compliance costs and alter the legal landscape. We also identify promising avenues for future research in light of the new landscape.

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