Though this be madness, yet there is method in ’t

The Daily Deal has an interesting discussion of how an SEC exemption allowed a $50 billion "enterprise" to be audited by a three-person (one retired, one a secretary) accounting firm in New City, New York (a hamlet of the Town of Clarkson, whatever that means).

The Sarbanes-Oxley Act amended section 17(e) of the 34 Act to require SEC-registered firms be audited by accounting firms registered with the SOX-created Public Accounting Oversight Board. However, the SEC immediately exempted private firms from this requirement (Release 34-48281) and kept extending the waiver every year (34-50020, 34-52909, 34-54920) because it was, "consistent with the public interest and the protection of investors."

As reported by the New York Times, the latest ban was allowed to expire at the end of 2008. Just in time, too.