Small Company Recommendations for SOX
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Small companies may be let off having to comply with the Section 404 clause, if the SEC's Advisory Panel has its way. An 18-3 vote in favour means a set of scaled reform recommendations are to be submitted to the Securities and Exchange Commission. Section 404 is the clause dealing with internal controls over financial reporting. Many have blamed the section for the increase in auditing costs. All the organisations and lobbyists complaining about the section have applauded the move. An example is the Biotechnology industry:- """For small public companies, Sarbanes-Oxley can be excruciatingly time-consuming and costly because of its 'one-size-fits-all' approach,"" said Jim Greenwood, BIO's (Biotechnology Industry Organisation) ( president and CEO. ""After months of interviewing and meeting with stakeholders representing all industries, it is clear that the advisory panel understands the impact of the unintended consequences of the Sarbanes- Oxley Act. "Items included in the recommendations:- Small capitalisation companies (less than $787m with less than $10m in product revenues.) should have relie from management and external auditor attestation. Companies in the bottom 1 per cent of the market cap (usually fluctuating between $125-128m and companies with less than $125 million in revenues. (Microcaps).
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Similar Areas Selected Books Keywords Sarbanes-Oxley and small companies Section 404 and small companies internal controls and small companies
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