Corporate Regulatory Report
A Summary of Current Regulatory Developments Affecting Publicly Listed Companies

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SOX 404 Roundtable. On May 10, 2006, the PCAOB and SEC held a joint roundtable on Second-Year Experiences with Internal Control Reporting and Auditing Provisions. The general consensus among the roundtable participants was that SOX 404 costs decreased in year two, although the level of savings varied depending on which study was cited. Larger companies seemed to experience more savings than smaller companies, and most companies acknowledged an improvement in internal controls as a result of SOX 404. Despite these cost decreases and internal control improvements, many participants expressed the view that SOX 404 costs still outweigh the overall benefits and further guidance regarding SOX 404 implementation is needed.