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Impact of the dreaded Section 404 of the Sarbanes-Oxley Act may be reduced.

The Public Company Accounting Oversight Board (PCAOB) is meeting on Thursday to consider a rule that would enable auditors to report corrections to accounting problems earlier.

Section 404, requires companies to report material weaknesses in financial reporting. Companies have to correct these. Auditors then have to confirm they have been rectified.

The new rule would enable the auditors to report the corrections are ok, up to a year earlier than at present.

A number of companies including Veritas have had to take advantage of a clause, which gives them extra time to investigate internal control problems before filing their accounts.

Other organisations are looking again at 404. In particular the SEC is holding a review on April 13th.

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