Saturday, December 16, 2006

Sarbaes Oxley changes

The SEC voted on some changes to Sarbanes Oxley designed to help small firms comply:

The SEC proposed new official guidance to companies about how to comply with the law. The proposed guidance is intended to reduce compliance costs and provide more flexibility, especially for smaller companies. The idea is to focus the review activity required by Sarbanes-Oxley on the search for, and identification of, material risks--the kind of problems that could change an investor’s view of a company. At the same time, ideally, the rules would not require expensive paperwork in situations where it’s unlikely to have any benefit. The PCAOB is scheduled to announce a related revision next week.


After reading the press release at the SEC, I can't see where this changes things all that much, if at all. Sarbox needs a major overhaul as the costs have far outweighed any benefit.

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