The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Proposal to help US companies with compliance

The US Public Company Accounting Oversight Board issued a standard yesterday that could help companies convince investors of the strength of their financial controls, without having to call in the auditors for a full report.

The proposal, if approved by the SEC, would enable companies to bring in auditors to test specific financial controls, rather than a company's entire control environment. This would make it far cheaper and easier to reassure investors.

Companies would also be able to bring in auditors and report on their findings at any time of the year, helping to reassure investors in a far more timely fashion. At the moment under Section 404 of Sarbanes-Oxley auditors attest to a clients' key financial controls just once a year, in what are called 10-K filings.

It would solve the problem of a company that claims to have rectified a problem but cannot get any outside verification, and so continues to be tainted with that material weakness until annual auditing comes around again the next year.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree