September 20, 2006
Chairman Cox Testifies Before House Financial Services Committee
On September 19th, S.E.C. Chairman Cox and PCAOB Chairman Olson testified before the Financial Services Committee.
Congressman Michael Oxley, one of the co-sponsors of the Sarbanes-Oxley Act of 2002, kicked off the meeting with an excellent overview of the progress and challenges associated with SOX.
Cox and Olson highlighted SOX benefits, but also addressed some of the challenges associated with Section 404 - Management's Report on Internal Control over Financial Reporting (SOX 404). In particular they addressed upcoming revisions to Audit Standard 2 (AS2 is used by the external auditors to evaluate the internal controls) to improve the efficiency of audits (and reduce excessive zealotry by the "externals"), plus developments on the front of providing management with more formal guidance with respect to ICFR implementation as an alternative to AS 2.
Click here to go to the C-Span: On Demand recording.
Investors all over the world, and in particular in the U.S., owe thanks to Senator Sarbanes and Congressman Oxley. As Cox said the Sarbanes-Oxley Act is "iconic" and "we have come a long way from the dark days of 2002" and "it is remarkable how many countries have adopted similar legislation".
By the way, doesn't Cox sound more than a little Presidential? Hmmm.
Congressman Michael Oxley, one of the co-sponsors of the Sarbanes-Oxley Act of 2002, kicked off the meeting with an excellent overview of the progress and challenges associated with SOX.
Cox and Olson highlighted SOX benefits, but also addressed some of the challenges associated with Section 404 - Management's Report on Internal Control over Financial Reporting (SOX 404). In particular they addressed upcoming revisions to Audit Standard 2 (AS2 is used by the external auditors to evaluate the internal controls) to improve the efficiency of audits (and reduce excessive zealotry by the "externals"), plus developments on the front of providing management with more formal guidance with respect to ICFR implementation as an alternative to AS 2.
Click here to go to the C-Span: On Demand recording.
Investors all over the world, and in particular in the U.S., owe thanks to Senator Sarbanes and Congressman Oxley. As Cox said the Sarbanes-Oxley Act is "iconic" and "we have come a long way from the dark days of 2002" and "it is remarkable how many countries have adopted similar legislation".
By the way, doesn't Cox sound more than a little Presidential? Hmmm.
