U.S. Chamber: New Sarbanes-Oxley Guidelines a "Good Start"

WASHINGTON, D.C.—The United States Chamber of Commerce called the new guidelines issued today by the Securities and Exchange Commission and the Public Company Accounting Oversight Board regarding Sarbanes-Oxley Section 404 a "good start," but indicated that more remains to be done to fix the implementation and reduce the unnecessary burdens on U.S. public companies.

"We are encouraged that the SEC and the PCAOB has begun to address many of the biggest problems facing companies today under Section 404, but key problems remain unanswered," said David Chavern, the Chamber's corporate governance initiative director. "Today's guidelines are a good start in creating a more efficient system for internal financial controls, but they are not a final solution."

Today's SEC and PCAOB guidance documents address the implementation of Section 404 of Sarbanes-Oxley. Some of the recommendations include: integrating audits of financial statements and controls; tailoring audit plans to risk; and relying more on the work of others.

Still unaddressed, according to the Chamber, are a number of issues, including a reexamination of some of the definitions embedded in Accounting Standard #2 and better guidance regarding the development of testing programs for IT systems.

"The business community has worked with the SEC and the PCAOB to find fixes for some of the unintended consequences of Sarbanes-Oxley Section 404," said Chavern. "This might be the only relief for this year's audit cycle, but more progress is possible."

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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