Actions by federal regulators will cut the cost of compliance with the controversial Section 404 of the Sarbanes-Oxley Act, trade groups say.[@@]
The moves by 2 federal agencies will give companies and their auditors greater flexibility, the trade groups assert.
The new guidance from the Securities and Exchange Commission and the Public Company Accounting Oversight Board shows the agencies are willing to respond to industry concerns, the groups say.
At the same time, the regulators refused to support calls by powerful industry groups that the law should be repealed.
Section 404 of the Sarbanes-Oxley Act and the SEC’s related rules require certain companies to include in their annual reports filed with the SEC a report on management’s assessment of the effectiveness of those companies’ internal control over financial reporting.