SEC Proposes New Guidance on Internal Controls

The Securities and Exchange Commission today proposed guidance to make it easier and less costly for companies to comply with internal-controls rules set forth by the Sarbanes-Oxley Act. The Commission voted 5-0 to publish the proposal and circulate it for public comment.
According to MarketWatch, SEC Chairman Christopher Cox said the accounting rules have posed "the biggest challenge" under the law and "without question, it has imposed the greatest cost." The proposed SEC rules would offer management much more flexibility in carrying out audits.