Sarbox Author Not Happy with Law's Implementation

Lora Bentley

The Sarbanes-Oxley Act of 2002 is not being implemented as its authors intended -- and it's the Public Company Accounting Oversight Board's fault. Or at least that's what former Congressman Michael Oxley, R-Ohio, thinks.


According to an accountingWEB story out today, the Sarbox co-author says the problems most companies have with Sarbanes-Oxley section 404 began when the PCAOB issued Auditing Standard 2. What started as a two-paragraph standard, he says, ended as 320 pages of too-prescriptive regulations that cost more to implement than anyone imagined they would.


Oxley isn't the only one unhappy with the PCAOB, of course. The Free Enterprise Fund has filed a federal lawsuit against the board, alleging that it is unconstitutional. So far the group's efforts have been unsuccessful, but an appeal is in the works.


Don't be too quick to judge, however. Both the Securities Exchange Commission and the PCAOB agree that change is due, if their actions are any indication. The PCAOB recently made its new auditing standard -- AS 5 -- available for public comment; the SEC has approved new delisting requirements for foreign companies listed on U.S. exchanges and proposed a new and simplified risk-based approach to Sarbanes-Oxley implementation.


Moreover, the agencies have met several times to develop a common approach to such risk-based implementation -- such that the audit processes are less redundant and compliance is more easily attainable in terms of implementation costs.

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Apr 19, 2007 1:38 AM Larry Byrnes Larry Byrnes  says:
Sarbanes Oxley was aimed at improving ethical behavior. The problem is that it missed the biggest ethics scene in the U.S. The large banks and investment bankers that control the Federal Reserve system and manipulate currency and the economy. The source of the criminality can be found at Look at the board of directors. Then look at the first chairman of the PCOAB and his resume. He headed the Basel II committee on capital accord prior to becoming the first chairman of the PCAOB. The board of BIS and the Basel II committee specifically are THE control point of planetary finance. Until free men confront and handle the appalling ethics of that crew, we will continue to have booms, depressions and periodic "harvesting" of the wealth created by hard working, productive Americans. The actions of the BIS and their local management body - the U.S. Fed and now the PCOAB -bring about planned economic slavery. Mr. Oxley should not be surprised - he just did not do his homework and unwittingly helped tighten the noose on American free enterprise and the American taxpayer. Reply

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