A US audit quality body has defended Sarbanes-Oxley and warned against changing the rules, saying it has brought about improved efficiency.
Cindy Fornelli, executive director for the Centre of Audit Quality said that the gains are 'too significant to ignore, and too valuable to the American economy'.
'Any adjustments to the rules mandated by the Act must carefully weigh efficiency and effectiveness against the Center for Audit Quality's twin goals of protecting investors and the markets,' she said. 'For the scale to dip too low in either direction would risk a return to rock bottom.'
The Centre recently conducted a nationwide survey, which showed that four out of five US investors have confidence in their market, the FT reported.
'Additionally, 80 per cent expressed confidence in the audited financial information released by publicly traded American companies,' said Fornelli. 'That is a marked rise since before the [Sarbanes-Oxley] bill was signed, when only 31% of investors reported confidence in the markets.'
Fornelli said the Act is an even better example of how good public policy can bolster investor confidence, which is central to economic growth.
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