SEC reviews expensive Sarbox accounting rule
Change to Sarbox rule that requires accountants to review corporate financial controls is debated for two weeks and counting...
SEC officials are reviewing
an accounting rule, which has been criticised by business groups as overly
expensive.
For two weeks, SEC officials and the board that oversees the audit industry
have been meeting and exchanging documents about the rule, which requires
accountants to review corporate financial controls.
But SEC chairman,
Christopher
Cox, said an agreement remains days away, the Washington Post
reported.
The rule – which is the single-most expensive part of the
Sarbanes-Oxley legislation – has been widely attacked by
trade groups and lawmakers, who want the rule scrapped.
However, consumer advocates have warned that establishing different standards
for mid-sized companies would result in the measure being gutted, making
financial reports less reliable for investors.
Cox said yesterday he was ‘confident’ a pact would be reached to both
‘improve the reliability of public company financial statements and better
protect investors.’
The SEC is to meet on December 13 to issue a new proposal.
Further reading:
Internal audit compromised due to regulatory
burdens
US ‘must revise Sarbox to stay
competitive’