PCAOB proposes internal control material weakness standard.

• Position: National

The PCAOB voted unanimously in late March to propose an auditing standard for reporting on the elimination of material weaknesses in companies' internal controls over financial reporting.

SOX Section 404 requires auditors to report on companies' internal control over financial reporting. The PCAOB is proposing a standard that would permit--but not require--auditors to report on a company's assertion that it had eliminated a previously reported material weakness in its internal control over financial reporting.

The PCAOB is seeking comments on the proposed standard until...