The Securities and Exchange Commission endorsed the recommendations of the agency's professional staff to eliminate "waste and duplication" in companies' compliance with Sarbanes-Oxley. The change is particularly aimed at providing relief for smaller companies.

The SEC told its staff to focus their work in four areas:

* Aligning the Public Company Accounting Oversight Board's new auditing standard (AS-5) with the SEC's proposed new management guidance under Section 404;

* Scaling the Section 404 audit to account for the particular facts and circumstances of different companies, particularly smaller companies;

* Encouraging auditors to use professional judgment in the 404 process, particularly in using risk-assessment; and,

* Following a principles-based approach to determining when and to what extent the auditor can use the work of others.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access