An Associated Press piece at Google News says lobbyists who are urging Congress to roll back Sarbanes-Oxley got a wakeup call over the weekend.
When auditors from PriceWaterhouseCoopers told insurer American International Group (AIG) its credit valuations were off and would require a substantial write down, Sarbanes-Oxley required AIG to disclose the information. The public was informed, and shareholders were protected.
Investors aren't happy, the writer says -- AIG stock went down 12 percent after the announcement -- but they aren't complaining about the costs of Sarbanes-Oxley compliance, either. For them, Sarbox did exactly what Congress intended for it to do.
As Pennsylvania State University associate accounting professor Edward Ketz told the Associated Press in this piece:
In the post-Enron era, it is imperative for auditors to have more courage and power, which is what we are seeing here.