Thursday, July 13, 2006
SEC seeks ideas on Sarbanes-Oxley controls
WASHINGTON, July 11 (Reuters) - U.S. securities regulators on Tuesday moved forward with a promised review of controversial corporate reform accounting rules by asking investors, companies and others for ideas to guide public companies in complying with the law.
Companies of all sizes have complained about the costs of implementing some of the Sarbanes-Oxley law requirements, especially those related to internal controls over financial reporting, also known as Section 404. The stricter requirements were adopted by Congress after shareholders were hurt by high-profile corporate scandals involving Enron Corp. and Worldcom.
To reduce excessive audit procedures -- which many companies have blamed for higher costs -- the SEC said it plans to issue guidance that focuses on "identifying risks to reliable financial reporting." That might include such things as clearly defining the terms "material weakness" and "significant deficiency" and laying out some fraud controls, it said.
posted by Brian Moran @ 2:41 PM