Part of the law, passed in the wake of Enron-type scandals, known as Section 404 obliges companies to review their systems for ensuring accurate financial reports and then have them tested by outside auditors.

After several years of complaints -- it costs an average of $3.8 million per year to comply with Section 404 -- as well as corporate relocations outside the United States to avoid the regulatory burden, the Securities and Exchange Commission has promised to issue clarifying rules next month.

The move, conducted in coordination with the Public Company Accounting Oversight Board, the auditing industry's overseer, reflects concerns of such business leaders as John Thain, head of the New York Stock Exchange.

"The problem with 404 is the way it was implemented," he said recently, adding that in its current state Section 404 lacks a "materiality standard."