SOX is imposing hundreds of billions of dollars of direct and indirect costs on US corporations, and threatening US competitiveness and capital markets. The SEC is charged with implementing SOX. Its rules on Section 404 have only made things worse. So what is the SEC doing? Here's what.
- Issuing a “guidance.”
- Working with the PCAOB on revising its auditing standard.
- Clarifying that even the smallest public companies will have to comply with the internal control reporting requirements no later than for “fiscal years beginning on or after Dec. 16, 2006.” The SEC will give "yet to be determined” guidance on how to deal with these companies. So much for its Advisory Committee's recommendation of a small company exemption.
What the SEC is saying is: Congress needs to act if anything meaningful is going to get done. Here's Henry Butler and my assessment of SOX and recommendations of what Congress should do.
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