Corporate backlash over Sarbanes-Oxley / Disclosure law called overly onerous; firms cite compliance costs

In mid-2002, amid a national wave of revulsion over scandals at corporations such as Enron and WorldCom, Congress overwhelmingly passed tough new accounting and public-disclosure rules intended to curb abuses that cost shareholders billions of dollars.

The Sarbanes-Oxley Act is a sweeping piece of legislation that regulates, among other things, how companies report financial results and disclose executive compensation. What's more, the law holds both company executives and external auditors directly accountable for the accuracy of financial reports and seeks to protect employees who blow the whistle on suspected fraud.

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