Accounting board to meet on internal controls

The board that oversees public accounting companies will meet Thursday morning to consider proposing a new rule that would allow auditors to report corrections to corporate accounting problems earlier.

Under Section 404 of 2002's Sarbanes-Oxley Act, companies must report "material weaknesses" in their financial statements and have outside auditors double-check them. The law was passed in the wake of corporate scandals at Enron and WorldCom, among others.

Thursday, the Public Company Accounting Oversight Board will vote on whether to propose for comment a standard that would allow auditors to report on corrections to those weaknesses as much as a year earlier than they can now.

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