SEC calls for delay to Sarbanes-Oxley compliance

The
Securities
and Exchange Commission (SEC) has proposed a one-year extension for small
companies to comply with the Sarbanes-Oxley act while SEC professional staff
start a cost-benefit study of an upcoming auditor attestation requirement for
smaller companies under Section 404(b) of the act.

SEC said the study would collect and analyse extensive ‘real world’ cost and
benefit data from a broad range of companies currently complying with section
404 under the newly-issued guidance for companies and auditors.

The new guidance for management and the new auditing standard were intended
to reduce the compliance costs of Section 404 while strengthening its focus on
material controls.

In addition to assessing the Section 404 cost reductions resulting from the
commission’s recent actions, the final report will also inform any decision to
improve the efficiency and effectiveness of section 404 implementation.

Further reading:

Sarbanes Oxley compliance becoming easier

The concept of corporate risk