With the clock ticking on regulatory efforts to improve implementation of Sarbanes-Oxley Section 404, a high-profile committee has offered its two cents on how to make compliance with SOX 404 less burdensome.

The recommendations come from a group of leaders in the investor, business, finance, law, accounting, and academic communities that is formally known as The Committee on Capital Markets Regulation. The group—also known as The Paulson Committee, since its formation was blessed by Treasury Secretary Henry Paulson—was established in September to assess how much U.S. public markets may be losing ground to foreign and private markets, and why.

In its 152-page ...