Sarbanes-Oxley: The Next Generation: COSO Readies Exposure Draft on Monitoring Internal Control; IMA Paper; Welytok Book
By Edith Orenstein, FEI Financial Reporting Blog - The Sarbanes-Oxley Act, particularly Section 404 on internal controls, remains in the collective mind-set as large public companies and their auditors are in the midst of publishing their fourth in a series of annual reports on internal control effectiveness this 10-K season. Under the SEC’s phase-in approach, smaller public companies entered their first year of management reporting on internal control this year, and on Feb. 1, were granted a ‘stay’ or delay on the requirement to have their auditor conduct an audit of internal control and file a related report on their findings until years ending on or after Dec. 15, 2009. Part of the reason for this further delay, said the SEC, was to allow time for the SEC to conduct its own study of the costs and benefits of reporting on internal controls under the new guidance issued by the SEC and PCAOB in 2007: SEC’s management guidance, and PCAOB’s ‘top-down’ oriented Auditing Standard 5 (AS5), replacing the more prescriptive AS2.
Meanwhile, further guidance and calls for additional guidance are emanating from various corners, including the Committee of Sponsoring Organizations of the Treadway Commission (COSO), the Institute of Management Accountants (IMA), and from JD/CPA Jill Gilbert Welytok, author of “Sarbanes-0xley For Dummies.” Read more about these developments here.