When Congress moved to craft the Sarbanes-Oxley Act of 2002, legislators assembled the bill "in record time," said Arthur Levitt, former chairman of the U.S. Securities and Exchange Commission. However, he said, the authors did little to work with company executives to determine the demands the law would place on businesses.
Still, business leaders who are pushing hard for major reforms to ease Sarbanes-Oxley prerequisites because of the high costs of compliance "are being shortsighted," said Levitt. The mandates for public companies to document financial controls "have been well worth the costs" for investors, he said.
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