The potential for misrepresentation may also be important practically because regulators
and others need accurate assessments of the consequences of their actions. For instance,
some commentators (e.g., Butler and Ribstein, 2006) have expressed concern about the
high growth and cost of auditing and internal control in recent years, in part as a result
of the Sarbanes-Oxley Act of 2002 (hereafter, SOX). Better knowledge of the benejits of