Enron-Era Accounting Rules Could Be Eased for Small Companies

The Securities and Exchange Commission proposed freeing small companies from a Sarbanes-Oxley Act requirement that an auditor sign-off on their internal controls over financial reporting, following years of criticism from conservative lawmakers and business groups that the rules are overly burdensome.

SEC commissioners voted 3-1 May 9 to seek public comment on the proposal.

Key Details

• Proposal would exempt companies with less than $100 million in annual revenue from the so-called auditor attestation requirement, which was implemented in response to accounting scandals at Enron Corp. and other companies.
• Small companies would still have to have their financial statements audited by ...