Statements of SEC Acting Chief Accountant Scott Taub and Corporation Finance Division Director John White Regarding New COSO Guidance on Section 404 Compliance
FOR IMMEDIATE RELEASE
Washington, D.C., July 11, 2006 - The Committee of Sponsoring Organizations of the Treadway Commission (COSO) today published new guidance on the use of its framework to address the needs of smaller businesses in fulfilling the requirements of Section 404 of the Sarbanes-Oxley Act.
Scott Taub, Acting Chief Accountant, U.S. Securities and Exchange Commission, said,
"This guidance will help smaller companies more efficiently and effectively implement the Section 404 internal control requirements. It will also help companies of all sizes understand and apply the fundamental concepts of COSO's internal control framework. The comments received during the exposure period added significantly to the development of the guidance. I am grateful to COSO and their Advisory Task Force for all of their efforts to develop this guidance."
John White, Director of the Division of Corporation Finance, added,
"This guidance is an important part of improving the implementation of Section 404 so that it will work efficiently and effectively. I expect it will help the Commission as we proceed with our announced plans to develop guidance for management on how to assess its internal control over financial reporting. I thank COSO and their Advisory Task Force for their work."