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Accountants urge robust debate on risk management reporting

first_imgThe article refers to a discussion paper from FEE, the representative organisation of the European accountancy profession, on the future of internal control and risk management. We never said that the Sarbanes-Oxley Act, the US legislation introduced after corporate governance scandals, was “a bad model” as your headline put it. What we said was that FEE was currently not convinced about the usefulness of introducing across the EU requirements for published effectiveness conclusions on internal control over financial reporting as required by Section 404 of the Sarbanes-Oxley Act.In our view, any new requirements to implement reporting on risk management and internal control in Europe must be based on evidence that the benefits to companies, shareholders and the public interest will exceed the costs involved. But FEE emphasises that it will be important to take account of the views of investors, companies and others, as well as forthcoming evidence about the usefulness, costs and benefits of such conclusions to investors as Section 404 of the Sarbanes-Oxley Act is implemented.Europe’s accountants urge robust debate on reporting on risk management and internal control in the EU. The discussion paper can be downloaded free of charge from the FEE website (http://www.fee.be). Comments on the paper are invited by 31 July 2005.David DevlinFEE presidentBrusselslast_img

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