Becoming a More Relational Firm in the Post–Sarbanes-Oxley Era

Kate Jelinek, PhD, CPA, and Ronald Jelinek, PhD

The effects of the Sarbanes-Oxley Act of 2002 (SOX) have been debated, discussed, and considered. But recent academic research suggests that the effect of the act's independence provisions on the way audit firms sell to, retain, and build relationships with publicly held clients has been insufficiently appreciated and understood. Consequently, the typical audit firm—that is, one that is not very proficient at marketing or selling— has been facing an increasingly uphill battle in its quest to effectively build client relationships.