The Securities and Exchange Commission and the Public Company Accounting Oversight Board plan to hold a May 10 roundtable to seek comments on the internal control reporting requirements of Section 404 of the Sarbanes-Oxley Act.

The forum will be held at the SEC's headquarters in Washington. The agencies held a similar forum in April 2005 on Section 404, which requires companies to disclose and fix internal control deficiencies, including "material weaknesses" that could lead to a restatement of financial results.

Company officials have complained about higher-than-expected compliance costs and the distraction of management from other strategic concerns. Institutional investors have praised the increased focus on internal controls prompted by Section 404 and cautioned against easing or delaying its requirements.

"We look forward to an update on compliance efforts after year two," SEC Chairman Christopher Cox said in an agency press release. "We will carefully consider the facts presented to help develop policies to effectively and efficiently improve the reliability of financial statements for the benefit of investors."

To offer comments on Section 404, one may use a submission form available here or send an e-mail to rule-comments@sec.gov. One may also send a letter (in triplicate) to: Nancy M. Morris, Secretary, Securities and Exchange Commission, 100 F Street, N.E., Washington, D.C. 20549-1090. The deadline for comments is May 1, and all comments should refer to File Number 4-511.

We also invite your comments.