The Atlanta Fed's macroblog provides commentary on economic topics including monetary policy, macroeconomic developments, financial issues and Southeast regional trends.
- BLS Handbook of Methods
- Bureau of Economic Analysis
- Bureau of Labor Statistics
- Congressional Budget Office
- Economic Data - FRED® II, St. Louis Fed
- Office of Management and Budget
- Statistics: Releases and Historical Data, Board of Governors
- U.S. Census Bureau Economic Programs
- White House Economic Statistics Briefing Room
May 17, 2005
Sarbanes-Oxley: The Accountants Aren't Helping
From the Wall Street Journal (page C3 in the print edition):
Regulators issued a rebuke to accounting firms, saying their interpretation of a controversial Sarbanes-Oxley rule had been too strict and resulted in unnecessary costs for some public companies.
The Securities and Exchange Commission and the Public Company Accounting Oversight Board urged accountants to be more flexible in their approach to a rule requiring that companies assess their internal controls over financial reporting. Regulators said auditors had become "overly cautious" and "mechanical" and needed to exercise judgment when interpreting the rule.
The guidance comes in response to growing complaints from businesses about the cost of complying with the regulation, which requires that companies assess their internal controls to ensure their financial reporting is accurate and reliable...
Executives have complained about the rule, saying auditors are performing massive reviews that aren't tailored to a company's size or specific risks. They complain auditors are driving up costs by looking at things that have no bearing on the accuracy of a company's financial statements.
Studies have estimated the cost to companies at about $3 million a year. Some companies have said they have stopped hiring and are considering moving work overseas to deal with the costs.
I continue to think this is a much under-appreciated story.
UPDATE: A few days old, but here is a related post from Brad DeLong.
UPDATE II: The SEC report is here.
TrackBack URL for this entry:
Listed below are links to blogs that reference Sarbanes-Oxley: The Accountants Aren't Helping:
- Contrasting the Financing Needs of Different Types of Firms: Evidence From a New Small Business Survey
- Gauging Inflation Expectations with Surveys, Part 3: Do Firms Know What They Don’t Know?
- Gauging Inflation Expectations with Surveys, Part 2: The Question You Ask MattersA Lot
- Gauging Inflation Expectations with Surveys, Part 1: The Perspective of Firms
- Chances of Finding Full-Time Employment Have Improved
- Exploring the Increasingly Widespread Decline in Involuntary Part-Time Work
- The Long and Short of Falling Energy Prices
- And the Winner Is...Full-Time Jobs!
- For Middle-Skill Occupations, Where Have All the Workers Gone?
- A Closer Look at Employment and Social Insurance
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- Business Cycles
- Business Inflation Expectations
- Capital and Investment
- Capital Markets
- Data Releases
- Economic conditions
- Economic Growth and Development
- Exchange Rates and the Dollar
- Fed Funds Futures
- Federal Debt and Deficits
- Federal Reserve and Monetary Policy
- Financial System
- Fiscal Policy
- Health Care
- Inflation Expectations
- Interest Rates
- Labor Markets
- Latin America/South America
- Monetary Policy
- Money Markets
- Real Estate
- Saving, Capital, and Investment
- Small Business
- Social Security
- This, That, and the Other
- Trade Deficit