SEC to finalize Sarbanes-Oxley tweaks
Published by claudia May 21st, 2007 in News, SEC, SOX, Section 404, Accounting rules, PCAOB, Sarbox Tags: accounting oversight board, aim, financial reporting, public company accounting oversight board, sarbanes oxley, Section 404, securities and exchange commission.U.S. securities regulators will vote on tweaks to the controversial Sarbanes-Oxley law on Wednesday, finalizing changes initially approved in April amid continuing complaints from businesses about the law’s unpopular accounting provision.
At issue is Section 404 of the law, which was passed in 2002 following scandals at Enron and other companies. The section requires companies to monitor their internal controls over financial reporting, as well as to test their controls. The aim is to ensure accurate financial statements and to catch fraud.
The Securities and Exchange Commission and the Public Company Accounting Oversight Board have been under pressure from Congress and businesses to adjust Section 404, which is often criticized as expensive and time-consuming.
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