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Article: Another unintended consequence of the Sarbanes-Oxley law.(Brief article)
- Article from:
- The Kiplinger Letter
- Article date:
- October 20, 2006
CopyrightCOPYRIGHT 2006 The Kiplinger Washington Editors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Another unintended consequence of the Sarbanes-Oxley law:
More auditors are insisting that their liability be limited. They're refusing to work unless firms sign contracts indemnifying them and agreeing to mediate or arbitrate disputes rather than go to court.
Bank regulators unhappy with the trend will bar such contracts next year. They want auditors to take responsibility for their work.
But the Securities and Exchange Commission won't go that route.
Public firms that mess up their filings must fix them quickly.
The SEC is cracking down, insisting that ...