In late 2006, BusinessWeek magazine (December 18, 2006) carried a report on the aftermath of the passage of the Sarbanes-Oxley Act. According to the piece, “the intentions were good, but in the two years since its passing, the Sarbanes-Oxley Act has collapsed into a glob of regulatory confusion costing U.S. businesses billions of dollars a year in compliance costs.” The article further noted that “(Tyhe act never got the vetting it deserved because of the race to approve it after the Enron and WorldCom meltdowns...” Nevertheless, one direct consequence of the Act was that a record number of U.S.-listed firms—1,300 companies, or over 8 percent of the total—restated their earnings in 2005. Discuss whether the criticisms of the Act noted in the BusinessWeek article are justified given the large number of firms that found it necessary to restate their reported earnings following the passage of the Act.