SEC comes down hard on Sarbox violators

Despite complaints that
Sarbanes-Oxley is
too rigorous and inflexible, US regulator, the
SEC come down hard on those who have not met
its requirements after charging charged 37 firms and 32 audit partners with
violating a key portion of the corporate reform law.

Those charged were accused of issuing reports on public companies’ financial
statements without first registering with the
Public Company Accounting Oversight
, the independent audit watchdog.

The firms and partners charged have collectively issued 60 audits for 53
companies between November 2003 and October 2005, the SEC said.

More than half agreed to settlements, two firms have agreed to repay fees
they received for their audits, while the other firms that settled returned fees
to the companies they audited during the course of the SEC’s investigation.

Further reading:

Sarbox compliance seen as positive

Health company blames Sarbox for delisting

US audit quality body defends Sarbox

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