A story on page 1 of the Nov 10 Wall Street Journal reports that the SEC is re-evaluting interpretation of Section 404 of the SOX rule, which dictates internal review and external auditing of financial reporting systems.
Citing pressure from “the nation’s business lobby,” the SEC is taking steps to allow a “more flexible reading,” and intends to “propose guidance . . . to help companies and auditors interpret Section 404 in a way likely to save them time and money.” The new guidance is expected next month.
See “Business Wins Its Battle to Ease A Costly Sarbanes-Oxley Rule” for details.