Wednesday, February 22, 2006
Group Opposes Sarbanes Exception
A proposal to exempt 80% of public companies from having auditors certify their internal controls "simply goes too far," former Federal Reserve Chairman Paul Volcker and former Securities and Exchange Commission Chairman Arthur Levitt told regulators.
In a Feb. 13 letter to the SEC, a group including Volcker and Levitt said the proposal would undercut the 2002 Sarbanes-Oxley Act by failing to safeguard against future accounting and company fraud. The letter was sent to SEC Chairman Christopher Cox and to William Gradison, acting chairman of the Public Company Accounting Oversight Board.
"In passing the Sarbanes-Oxley legislation, the Congress adopted a reasonable approach to achieve real reform, not just the appearance of reform," the letter said. "It would be unfortunate now if the SEC and [the accounting oversight board] undercut the effectiveness of congressional legislation through misguided regulatory action."
posted by Brian Moran @ 8:21 AM