The SEC's plans to ease small-company burdens

Some people have called for an end to small company audits. The Securities and Exchange Commission will not go that far, but it is moving to lighten the load. While all will be required to conduct audits, the SEC will categorize by size; companies with market caps under $75 million will have to evaluate internal controls but will not have to have the results audited for two years. In the third year, an audit will be required. Companies with market caps up to $700 million will also get relief, though the details have not been released. Also, the SEC is currently working with the PCAOB's Mark Olsen to deliver a set of guidance. One goal is to shift the focus of control assessments. Basically, the SEC is fine with audit firms focusing on the areas of greatest potential risk. An audit need not be so darn comprehensive. That's where a lot of the cost and frustration has been coming from. The wild card in all this is Congress. There are many relief efforts underway that could muddy the picture. We'll have to see what priorities bubble forth from the new house and Senate (see next item). 

For more on this:
- read this New York Times article

PLUS: The SEC and the PCAOB met this weekend to discuss relief measures. Some wonder if there is some tension building between these two entities. Any changes would have to be put in place by March or April to affect the upcoming corporate audits. Article

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