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Parts of the landmark 2002 Sarbanes-Oxley corporate governance law should be implemented in different ways to save businesses money and time, U.S. Treasury Secretary Henry Paulson said in a speech Monday.

In prepared remarks to the Economic Club of New York, Paulson said a new law to amend the controversial act is not needed, but he acknowledged the impact its accounting provisions, in particular, are having on businesses large and small.

“We need to implement the law in ways that better balance the benefits of the legislation with the very significant costs that it imposes, especially on small businesses,” Paulson said.

Paulson singled out section 404 of the act, which has long drawn complaints from businesses for being costly and time-consuming. It requires management to sign off on the effectiveness of a company’s internal financial controls and requires an auditor’s attestation.

“Section 404 should be implemented in a more efficient and cost effective manner,” Paulson said.

The Securities and Exchange Commission will seek comments about a new auditing standard soon, Paulson said.

Morningstar: Paulson Calls For Some Sarbanes-Oxley Changes