The shape of reform to become clearer soon

Chris Cox, chairman of the Securities and Exchange Commission, says that changes are coming soon. Most likely, various reform measures will be adopted at a Dec. 13 public meeting. This has been known for a while, but Cox has certainly kept up the drum roll. We've had a lot of hints as to what the SEC considers reform. The best bet is that it will embrace some of the changes that the PCAOB has already proposed to the agency. The PCAOB has been re-formulating Auditing Standard No. 2, aiming to clarify definitions of material weakness and significant deficiency among other things. The main problem seems to be that auditors have interpreted guidelines way too conservatively in order to protect themselves. Cox is moving with the political winds. Sarbox reform is certainly vogue in Washington.

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PLUS: Some accountants react to impending changes. Article

ALSO: Paulson keeps up the drumbeat for 404 change. Article

AND: The Bush Administration will review financial regulations. Article