Verret Appears, Comments on FoxNews
Professor J.W. Verret made an October 26 appearance on FoxNews on "Special Report" with Brett Baier to discuss the costs of the Sarbanes-Oxley and Dodd-Frank acts.
Later in the week, Verret's previous Hill testimony was cited in a FoxNews article examining political candidates' calls for repeal of Sarbanes-Oxley's Section 404 requiring public companies to include in their annual reports both the firm's own assessment of its "internal controls" and an outside auditor's assessment.
Testifying before the House Financial Services Committee last month, Verret told lawmakers the Securities and Exchange Commission (SEC) vastly underestimated the costs attributable to the Section 404(b) requirement for outside audits.
large firms pay $5,000,000 a year. The smaller firms, it's even worse. They pay
a lower amount, but it's a much higher part of their revenues,"
Verret told FoxNews. "Investors are paying in the form of lower returns. That money is spent on just paying more to auditors and accountants to really help these companies comply with the new red tape."
2012 Candidates Target Costly Enron-Era Law Aimed at Thwarting Accounting Fraud, FoxNews.com, October 27, 2011. By James Rosen.
"Now, in a campaign season where excessive regulation has emerged as an improbable yet potent issue on the stump, Sarbanes-Oxley and its legacy are drawing new scrutiny on the 2012 GOP presidential campaign trail.
"And not just from Perry. Number 10 in the 59-point economic plan put forward by former Massachusetts Gov. Mitt Romney last month is a pledge that the candidate, if elected, 'will seek to amend' Sarbanes-Oxley, to make compliance with it 'less onerous' for mid-sized companies. While Romney did not mention Section 404 explicitly, there was no mistaking which provision he had in mind.
"Former House Speaker Newt Gingrich and Rep. Michele Bachmann of Minnesota have both called for the outright repeal of Sarbanes-Oxley. And so, too, has Rep. Ron Paul, who has the strongest record on the issue: The self-declared libertarian from Texas was one of only three House lawmakers who voted against Sarbanes-Oxley back in 2002."