SOX 404 requirements under review and may be trimmed 1839

  • Sharing this as an FYI …
    Interview: Democrat Says Sarbanes-Oxley Already Being Thinned
    Please add www and paste into browser,1895,2049888,00.asp
    WASHINGTON (Reuters)The most controversial section of 2002’s post-Enron Sarbanes-Oxley lawunder fire in the run-up to Tuesday’s electionsis already being thinned down by regulators under orders from the U.S. Congress, a senior Democrat told Reuters Wednesday.
    Amid complaints by Republicans and Democrats alike about the burdens Sarbanes-Oxley places on business, Rep. Barney Frank told Reuters the regulators are working on it.
    ‘We’re dealing with that. I think Sarbanes-Oxley, as administered, has become too burdensome,’ Frank said. ‘It’s possible to reduce the burden without undercutting the principle. We’ve asked them to do that and I think they will.’
    Frank, a Massachusetts Democrat, would become chairman of Financial Services Committee if Democrats gain the upper hand in the House on Tuesday. Many polls are putting House control within their reach.
    Frank said he expects ‘sometime next year’ to see new guidance from the Securities and Exchange Commission and the Public Company Accounting Oversight Board (PCAOB) on how to apply the internal controls provisions of Sarbanes-Oxley.
    Those provisions, known as Section 404, have come to symbolize Sarbanes-Oxley, which covered dozens of areas as adopted four years ago amid scandals that shook the markets.
    The rest are generally now viewed as worthwhile reforms, but Section 404 has come in for heavy criticism.

  • Hopefully something good will come out of it.
    it’s a pity that there is no confirmed date for the guidance though (’…sometime next year…’).This means that changes may not have an effect until potentially late or mid- 2007, in which case we may have to proceed as we have in the past the the bulk of next year.

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