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Of chief concern for Nicolaisen is that many companies and their auditors are already reporting extraordinary difficulty in applying the internal audits due to be required under the Sarbanes-Oxley Act, which will become de rigeur early next year. Nicolaisen stated that he believes that as many as 20% of all companies might have to report weaknesses in internal corporate controls under the new requirement, and believes that correcting this deficiency is of utmost importance.

I don't think this point should be written off as just an excuse that FASB is giving because they're caving in to special interests. Sarbox 404 compliance is a massive project at most companies, and it is important that it is done properly. Adding another major accounting change may be too much of a burden for some companies.

Trust me. :)

:-) Juice
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