Sarbanes' Pain Getting Sharp for Some

The deadline to comply with a key provision of the Sarbanes-Oxley Act is fast approaching, and already companies are warning they may not meet the target date -- or will only do so after incurring huge costs.

The controversy focuses on a section of the landmark law that requires companies to document their so-called internal controls for preparing financial reports. The law mandates that companies' auditors evaluate their assessment. Companies with fiscal years ending on Nov. 15 will be the first to have to comply with the provision when they prepare their annual reports.

Some companies and business groups are calling the internal controls rule overkill, part of an overreaction by policymakers to Enron, WorldCom and other corporate scandals. ...