Securities and Exchange Commission Chairman Christopher Cox said Tuesday that he sees "no irreparable problems" blocking compliance with the internal-controls rules adopted by Congress in the 2002 Sarbanes-Oxley Act.
The package of corporate accounting reforms includes a requirement for public companies to review their internal controls over financial reports annually, subject to a second check by the firm's outside auditor. Critics say the requirement, already in effect for larger U.S. firms, has been costly and could crush smaller companies, which are still exempt from it.
In testimony to the House Financial Services Committee on Tuesday, Cox said that while complying with internal-controls requirement has been costlier than anticipated, it is producing significant benefits. He said he's "convinced that there are no irreparable problems" with that part of the 2002 law and officials are working on ways to make compliance more cost-effective. He assured lawmakers that the SEC has ample authority to make changes on its own and doesn't need Congress to revisit the law.
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