Wednesday, May 23, 2007
Today the SEC unanimously approved guidance for management to use in evaluating internal controls over financial reporting. The guidance is intended to make it easier to comply with section 404 and reduce the costs of compliance. One of the biggest cost reductions is expected to come from a rule that will require auditors to provide only one opinion on internal controls, instead of the currently required two -- one on the controls, one on management's process in assessing the controls. Tomorrow PCAOB is expected to approve a comparable standard for auditors. See WSJ, SEC Approves Guidance To Ease Sarbanes-Oxley Rules.