More NewsSarbanes-Oxley to be watered down

Sarbanes-Oxley to be watered down

US politicians and senior financial leaders shift position on Sarbanes-Oxley

US vice-president
Dick
Cheney
said yesterday that the White House would be willing to lighten the
Sarbanes-Oxley legislation.

This comes after Cheney earlier admitted that the measure – aimed at
enforcing strict accounting practices which force companies and auditors to
makes detailed and lengthy disclosure of internal financial processes – may have
gone to far, The Times reported.

The Sarbanes-Oxley Act was introduced to the US in 2002
following the Enron and WorldCom accounting scandals.

A meeting held between the US Treasury and bank executives a month ago
resulted in a shift towards watering down Sarbanes-Oxley rules, which have
become a burden to the extent that several multi-nationals have delisted from
the American stock exchanges.

In a local TV interview, Cheney said: ‘I think you can make a case that
Sarbanes-Oxley went too far. The fact of the matter is, the things – when we
had, for example , Enron and WorldCom, the problems that developed from the
standpoint of those companies, whose activities were illegal before there was
any additional regulation put in place.’

The Act is to become even more vulnerable as it’s authors,
Senator
Paul Sarbanes and Michael Oxley
, head for retirement this year.

Further reading:

Sarbox driving companies away from US listing

Red tape overload hurts business

Audit watchdog to trim down Sarbox

Related Articles

Amazon UK halves its corporation tax bill despite increased turnover

More News Amazon UK halves its corporation tax bill despite increased turnover

4m Alia Shoaib, Reporter
Increase in UK business confidence despite Brexit, according to ICAEW

More News Increase in UK business confidence despite Brexit, according to ICAEW

7m Alia Shoaib, Reporter
Live blog: Spring Budget 2017

Corporate Tax Live blog: Spring Budget 2017

9m Accountancy Age editorial
The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

Insolvency The Curious Incident of the Insolvency Sector in the Light of Economic Turbulence

11m Accountancy Age editorial
Leonard Curtis called in as administrators for builders Boshers

Legal Leonard Curtis called in as administrators for builders Boshers

11m Stephanie Wix, Writer
New Year Honours of 2017

Accounting Standards New Year Honours of 2017

11m Stephanie Wix, Writer
"Not enough time" to implement MTD by 2018, says Tyrie

Corporate Tax "Not enough time" to implement MTD by 2018, says Tyrie

1y Stephanie Wix, Writer
Colin: A spoonful of investment...

Governance Colin: A spoonful of investment...

1y Stephanie Wix, Writer