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Sarbanes-Oxley Draws Renewed Criticism

Sarbanes-Oxley Draws Renewed Criticism

by Rick Turoczy on January 13, 2005

Less than three years after the public scandals of Enron, WorldCom and Global Crossing first came to light, a group of companies is retaliating against measures put in place to prevent other such accounting debacles. The group, comprised of several Washington-based business lobbyists, has claimed that some provisions within the Sarbanes-Oxley law are debilitating to businesses from a cost standpoint and are preparing to lobby for reforms to the law.

Sarbanes-Oxley was first drafted to establish controls on accounting and other financial management to secure better corporate governance and protect individual investors. The provision in contention is Section 404, which requires the creation of extensive policies and controls within public companies to secure, document, process, and verify material information dealing with financial results. The highly anticipated and much dreaded provision went into effect after delays on Nov. 15.

Sarbanes-Oxley Draws Renewed Criticism

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