Wednesday, September 28, 2005
The SEC Fine-Tunes Operation of the Sarbanes-Oxley Act
Newly appointed SEC Chairman Christopher Cox, commenting on the proposal to ease quarterly filing deadlines and the extended deadline for small companies, said "[These changes] in no way reflect any desire to back away from the requirements of the Sarbanes-Oxley Act." One commissioner echoed those sentiments, pointing out that the benefits of the financial reporting and disclosure laws far outweigh the burdens. Another commissioner said the changes were designed to ensure that meeting the deadlines did not result in poorer-quality filings. In extending the deadline for small businesses, the SEC highlighted the work of an advisory committee that had recommended the extension.
These changes send two clear messages to the market:
The Sarbanes-Oxley Act is here to stay. The new definitions and deadlines are signs that the operation of the law is being fine-tuned for implementation and enforcement.
The SEC has taken into account concerns about the complexity and burdens the act creates for businesses.
posted by Brian Moran @ 9:44 AM