For those of you who can't get enough of internal controls, click here for the 1/12/05 speech given by Allen Beller (Director, Division of Corporate Finance). In short, Beller stated that it is a mistake to focus the discussion of the success of SOX solely on the costs and benefits of the internal control provisions. Beller also discussed what the SEC will be looking for if a filer reports material weaknesses. Companies reporting a material weakness should provide information on the weaknesses' consequences and the plans they have to remediate those weaknesses. Once the first round of internal control reports by accelerated filers is in, Beller would like the SEC and the PCAOB to evaluate the processes and the filings to consider what has worked and where improvements can be made. Beller wants to ensure that the rules encourage companies genuinely to improve their controls and processes and wants to ensure an appropriate scope for an auditor's professional judgment exists in the process.

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