Signs indicate support for the Sarbanes-Oxley Act is beginning to fracture, even as state insurance regulators and industry groups move closer to consensus on tougher internal standards for annual insurer audits, according to an exclusive story in the March 20 issue of BestWeek.
Passed in 2002 by overwhelming consensus, SOX has come under increased scrutiny for both its costs and its unintended consequences. New challenges to the law are mounting in Congress, in the courts and within the U.S. Securities and Exchange Commission as both of its authors--Rep. Michael Oxley, R-OH, and Sen. Paul Sarbanes, D-MD--prepare to retire this year.
For many, the most pressing issue is the burden the law places on small public companies. The SEC has voted twice to extend the compliance deadline for those with market capitalizations of less than $75 million to comply with Section 404 of Sarbanes-Oxley. This requires companies to attest to the soundness of their internal controls and have their external auditors do the same.
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