Political Quotes

“today I am joined by Senator Grassley in reintroducing the PCAOB Enforcement Transparency Act. This bill permits the Public Company Accounting Oversight Board, PCAOB, to make public the disciplinary proceedings it has brought against auditors and audit firms earlier in the process. Over 10 years ago, our markets were victimized by a series of massive financial reporting frauds, including those involving Enron and WorldCom. These and other public companies had produced fraudulent and materially misleading financial statements, which artificially drove their stock prices up. Once the fraud was discovered, investor confidence plummeted. In response to this crisis, the Senate Committee on Banking, Housing, and Urban Affairs conducted a series of hearings, which produced consensus on a number of underlying causes, including weak corporate governance, a lack of accountability, and inadequate oversight of accountants charged with auditing public companies' financial statements. In order to address the gaps and structural weaknesses revealed by the investigation and hearings, the Senate passed the Sarbanes-Oxley Act of 2002 in a 99 to 0 vote. The Sarbanes-Oxley Act ensured that corporate officers were directly accountable for their financial reporting and for the quality of their financial statements. This law also created a strong, independent board, the PCAOB, to oversee the conduct of the auditors of public companies.…”