uce the costs of these 404 audits for smaller companies by making them voluntary. There is also a movement to rely more heavily on the internal audit function for an assessment of lower risk internal controls.

By changing the rules for implementation the SEC f

Last year a 15 member commission was created by the US Chamber of Commerce to evaluate the effects of litigation & regulation on the US capital market. Tom Donohue, the CEO of the Chamber, is a powerful business lobbyist that has become critical of the implementation of Sarbanes Oxley (SarBox) especially section 404 which covers the assessment of internal controls.

The question remains: Is the litigious US business environment driving away foreign investment in US public companies? Has the SarBox section 404 caused these declines and how could it be changed to build confidence but retain assurance of the efficiency of internal controls?

Despite the criticisms in the report, the Securities and Exchange Commission's (SEC) Christopher Cox has responded with an acknowledgement of the difficulties of SarBox but an emphasis on the new changes. The Complete Act of 2007 recommends a limitation of section 404 that only requires the internal control audit on a three year basis. Another change proposed attempts to reduce the costs of these 404 audits for smaller companies by making them voluntary. There is also a movement to rely more heavily on the internal audit function for an assessment of lower risk internal controls.

By changing the rules for implementation the SEC fe

n of Sarbanes Oxley (SarBox) especially section 404 which covers the assessment of internal controls.

The question remains: Is the litigious US business environment driving away foreign investment in US public companies? Has the SarBox section 404 caused these declines and how could it be changed to build confidence but retain assurance of the efficiency of internal controls?

Despite the criticisms in the report, the Securities and Exchange Commission's (SEC) Christopher Cox has responded with an acknowledgement of the difficulties of SarBox but an emphasis on the new changes. The Complete Act of 2007 recommends a limitation of section 404 that only requires the internal control audit on a three year basis. Another change proposed attempts to reduce the costs of these 404 audits for smaller companies by making them voluntary. There is also a movement to rely more heavily on the internal audit function for an assessment of lower risk internal controls.

By changing the rules for implementation the SEC f

404 caused these declines and how could it be changed to build confidence but retain assurance of the efficiency of internal controls?

Despite the criticisms in the report, the Securities and Exchange Commission's (SEC) Christopher Cox has responded with an acknowledgement of the difficulties of SarBox but an emphasis on the new changes. The Complete Act of 2007 recommends a limitation of section 404 that only requires the internal control audit on a three year basis. Another change proposed attempts to reduce the costs of these 404 audits for smaller companies by making them voluntary. There is also a movement to rely more heavily on the internal audit function for an assessment of lower risk internal controls.

By changing the rules for implementation the SEC f

ded with an acknowledgement of the difficulties of SarBox but an emphasis on the new changes. The Complete Act of 2007 recommends a limitation of section 404 that only requires the internal control audit on a three year basis. Another change proposed attempts to reduce the costs of these 404 audits for smaller companies by making them voluntary. There is also a movement to rely more heavily on the internal audit function for an assessment of lower risk internal controls.

By changing the rules for implementation the SEC f

uce the costs of these 404 audits for smaller companies by making them voluntary. There is also a movement to rely more heavily on the internal audit function for an assessment of lower risk internal controls.

By changing the rules for implementation the SEC feels that it would appropriately mitigate the costs to firms for their audit AND reduce their exposure to unwarranted securities fraud lawsuits. This is important to keeping the confidence of foreign and domestic investors but also to the public companies that must adhere to these strict regulations. It will continue to be a concern for foreign companies wanting to enter into the US capital market. The SEC's ultimate response will have a significant impact on the future of US public investment.