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Panelist: SEC Deserves Failing Grade A diverse final panel results in some testy exchanges as the regulators seek next steps for 404.

Tim Reason, CFO.com | US
May 10, 2006

Back to the basic

The great problem is the Attestation of the Independent Auditors on Managements's assessment of the internal controls.Eliminating this disposition of the regulation, you solve the cost problem and you dont lose much,considering that the Auditors will continue to perform the auditing of the internal controls which is now integrated with the financial statements auditing.
Back to the basics : Management is responsible for preparing the financial statements and for implementing the related internal controls. Independent Auditor is responsible for examining and certifying both, declaring the exceptions and weaknesses on both.
More : The AICPA has recently released new stantards SAS 104 -111 , which are to be applied in the non listed companies (these demand application of AS2), that put much great emphasis in the auditing of internal controls and under a risk assessment approach . If these new standards were to be applied to listed companies as well, a improvement in the auditings will certainly happen relieving the need for the attestation on Management's assessment.

Posted by joao costa | May 11, 2006 2:13 PM ET