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SEC Falls Short of Promised Audit Cost Savings

July 31, 2019, 3:34 PM

Biotech, pharmaceutical companies, and small banks might not see the cost savings they hope for under a proposal to free them from some internal control audit requirements in the Sarbanes-Oxley Act.

U.S. accounting firms told the Securities and Exchange Commission that any reduction in testing for internal controls over financial reporting (ICFR) would be offset by extra audit work.

“The actual cost impact may vary widely among affected issuers,” Grant Thornton said in a letter to the SEC. “While there likely would be some cost reduction by eliminating the requirement to obtain an auditor attestation on ICFR, we believe it ...

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