Sarbanes-Oxley Goes to Supreme Court

[caseyjones22]

I think SOX is an effective bill. It creates a lot of accoutability among officers that normally wouldnt be there. It also imposes STIFF sentances for officers that even conspire to commit fraud. I read the bill and there are WAY more important things in the bill than 'trivial' things as this guy claims. Considering it cost the federal gov't 3.4 BILLION dollars to pay off one man's misappropriation (keating, Lincoln S&L) that destroyed an entire towns economy some effective reg. is a small price

[CEIdotorg]

@caseyjones22 The point is that the requirements to document trivial "internal controls" in the PCAOB's interpretation of Section 404 has become the most costly part of the law -- $5 million on average for a public company -- while delivering little tangible benefit for shareholders. As I said, it has become the Accountants' Full Employment Act with auditors looking over companies' document minutiae like who has the office keys. For all this cost, it did nothing to prevent the subprime meltdown.

[caseyjones22]

@CEIdotorg I don't see how a CPA firm finding out who has the keys would cost $5 million. Are those the only internal controls that a firm must document? because I don't think that would cost $5 million. If you're paying that kind of extra money I'd think there would be more investigation into internal controls. I like how you put it in quotations aroud internal controls to try to make them seem less legitimate. And I don't think monitoring the mortgages banks sell falls under the scope of SOX.

[ezequielm305]

this guy is like a "uh?"...every 2 seconds.

[BobLaw22]

this guy doesn't know what he is talking about

[8Wonderboy]

As usual//

[musicload]

Thank you for such insight.

[papeluso]

I love CEI, BUT......

can you please explain what are the constitutional reasons why it is being challenge.

[MooseOfReason]

According to Christine Hall, the Communications Director for CEI:

"The Appointments Clause of the Constitution requires that "officers of the United States" be appointed by the president and confirmed by the Senate. But the officers serving on the PCAOB, with tremendous power to impose criminal and civil penalties on people and companies accused of violating accounting regulations, were not appointed that way."

[papeluso]

THANK YOU!!!!!!!!

[MooseOfReason]

Welcome. :)

[8Wonderboy]

yp:)

[caseyjones22]

@MooseOfReason Isn't that because that the PCAOB is a non-profit and not a gov't agency

[MooseOfReason]

@caseyjones22 Their website says they were established by Congress, so I'm sure Congress has some authority over them.