Wednesday, December 12, 2007

SEC’s Cox Tells House Small Bus Committee He Wants to Delay Sarbox External Audit Requirement for Small Co’s by Additional Year

According to written testimony prepared for a hearing of the House Small Business Committee taking place right now, SEC Chairman Christopher Cox will tell the committee: “I intend to propose to the Commission that we authorize a further one-year delay in implementation for small businesses” in the requirement that small bus provide their first external auditor’s report on internal control, currently due effective year-end 2008, “in order to base our decision on final implementation of section 404(b) on the best available cost data.”

Cox restricted his call for a further delay for small co’s only to Section 404(b) of Sarbanes-Oxley – the section which requires an external auditor’s report on internal control.

His written testimony did not suggest any 11^th hour deferral of the effective date for Section 404(a) of Sarbanes-Oxley, which requires management to report on internal control. Under the current SEC rules, small co’s (specifically, “non-accelerated filers,’ generally, companies with less than $75 million market cap) must begin filing their first Section 404(a) management reports on internal control effective this year-end.

Large co’s (accelerated filers) have been providing both the management report and external auditor’s report under Sarbanes-Oxley for three years now.

SEC’s Cox Tells House Small Bus Committee He Wants to Delay Sarbox External Audit Requirement for Small Co’s by Additional Year

Labels: 404 delay, Cox, non-accelerated filers, sub-$75M market cap

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