Thursday, October 27, 2005
COSO moves to cut Sarbanes-Oxley costs
An industry advisory group on Wednesday published proposals that could enable smaller US public companies to cut the cost of complying with the most complex and expensive part of the Sarbanes-Oxley legislation on accounting and corporate governance.
The Committee of Sponsoring Organisations of the Treadway Commission, a private sector body that promotes good financial reporting, is seeking public comment on its guidance for how smaller companies and their auditors can go about implementing the 2002 legislation's requirements on internal controls.
Section 404 of the legislation requires companies to report every year on the quality of their internal controls, which are supposed to ensure good accounting and guard against fraud.
Big and medium sized companies started complying with section 404 last year, and many have complained about the cost of documenting and testing their controls.
posted by Brian Moran @ 8:47 AM