Wednesday, July 20, 2005
Former SEC head says Sarb-Ox to be 'fine-tuned'
When Congress crafted the Sarbanes-Oxley Act of 2002, legislators assembled the bill "in record time" and did little to work with corporate executives to determine the demands the compliance requirements would place on businesses, said Arthur Levitt, former chairman of the U.S. Securities and Exchange Commission.
Still, members of the business community who are now pushing hard for major reforms to Sarbanes-Oxley because of the high costs of compliance "are being shortsighted," since the mandate for public companies to document their financial controls have "been well worth the costs" for investors, said Levitt.
"If you have any doubts about this, ask those thoughtful shareholders for any of those 586 companies that reported material weaknesses [with their internal controls] during the first four months of the year," said Levitt. He served as a panelist at a regulatory compliance conference held in Washington today.
posted by Brian Moran @ 9:01 AM