With costs of complying with the Sarbanes-Oxley Act soaring, the chorus of opponents to the act is growing louder, suggesting that the time may be near for changes to the law. One step in that direction, reports CNN, is a lawsuit filed by The Free Enterprise Fund, against the Public Company Accounting Oversight Board. The suit charges that the law that created the PCAOB violates the separation of powers clause of the Constitution.
SOX is "a classic example of government overreaching," Mallory Factor, chairman of the Washington, D.C.-based lobbying group told CNN. Observers say that while the act helped by providing "rigid specificity to accounting rules," it fails to address issues of corporate culture that currently place profits above all else – viewed by some as the underlying problem. While large companies have seen their compliance costs stabilize – smaller ones still are suffering from the financial burden – they, too, would like to see some flexibility in SOX.