SEC proposes guidance on internal control reporting requirements

Bank News, January, 2007 by Anonymous

Proposed guidance issued by the securities and Exchange Commission to improve the application of internal control reporting requirements, thereby reducing costly unintended burdens, has been commended by the American Bankers Assodatioa

"Banks have expressed concern that over-auditing has significantly increased the costs of complying with the internal control requirements of Sarbanes-Oxley," said Edward L. Yingling, ABA's president and CEO. "This guidance, along with anticipated changes from the Public Company Accounting Oversight Board, will bring some needed clarity."

Banks have raised concerns that auditors' interpretations of section 404 have unnecessarily increased compliance costs.

The SEC recommended:

* Requiring only one report from auditors rather...

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