SEC responds to public comments on proposed changes to Sarbanes-Oxley rules and standards
On 4-Apr-07, SEC Commissioners had an open meeting on the many public comments on the proposed changes to Sarbanes-Oxley (SOX) rules and auditing standards. ASQ President, Ronald D. Atkinson, had sent to both the U.S. SEC and PCAOB the consolidated comments from ASQ Sarbanes-Oxley (SOX) experts.
The SEC Commissioners provided direction to SEC and PCAOB staff was to
- improve Sarbanes-Oxley implementation,
- ease Smaller Company burdens,
- focus effort on 'What Truly Matters', the integrity of the financial statements
Specific direction was given to PCAOB on the replacement auditing standard to following a principles-based approach to determining when and to what extent the auditor can use the work of others. The ASQ comments also stressed the capability of quality managers, engineers, and auditors to produce accurate and unbiased company records that can be used by both internally the top management and its board of directors and the externally by the financial auditors. When the auditors use the work of others the result is both time and money are saved for public companies. The challenge to companies is whether to hire consultants or to train their staff to created useful records.
