Is an internal control reprieve in the works?
It looks as though small companies will get another year to fully comply with Section 404 of the Sarbanes-Oxley Act.
According to CFO.com's Sarah Johnson, SEC Chair Christopher Cox will ask the commission to approve a year-long delay in the deadline for which smaller companies -- those with market capitalizations below $75 million -- must comply with Section 404(b), which outlines auditor attestation requirements.
Under the current deadline, Section 404(b) requirements must be met for fiscal years that end after Dec. 15, 2008.
Writes Johnson: "Cox said smaller companies shouldn't have to comply at least until the SEC has completed a study on 404 costs, most likely by June 2008. 'Unless there is an additional deferral, companies will incur compliance costs before the SEC has the benefit of study and analysis,' Cox said."
Is this a good move by the SEC? How much more time do small companies need to comply?