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Thursday, May 18, 2006

Sarbanes-Oxley Exception Denied

The Securities and Exchange Commission yesterday bucked intense, months-long lobbying by business groups and announced that it will not exempt small companies from a key set of new, post-Enron investor-protection rules.

The SEC said all firms must eventually adhere to the rules, which require companies to document -- and an outside auditor to confirm -- that adequate internal controls are in place to ensure that financial statements filed with the SEC are accurate and paint a realistic picture for investors.

"The ultimate objective is to improve the quality of financial statements," Cox said.

Sarbanes-Oxley Exception Denied


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