Home > Compliance, Legal Issues > Small Public Companies Have Six More Months to Meet SOX Internal Controls Requirement

Small Public Companies Have Six More Months to Meet SOX Internal Controls Requirement

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If you work for or consult with small public companies with floats under $75 million dollars, then this article from the Journal of Accountancy is important.   Below is an excerpt.  You can read the entire article by following the link at the bottom of the post:

“The SEC on Friday announced that the smallest public companies have six more months to provide audited assessments on the effectiveness of their internal control over financial reporting.

Under section 404 of the Sarbanes-Oxley Act, public companies and their independent auditors are each required to report to the public on the effectiveness of a company’s internal controls. The smallest public companies with a public float below $75 million have been given extra time to design, implement and document these internal controls before their auditors are required to attest to the effectiveness of these controls.

The extension will expire beginning with the annual reports of companies with fiscal years ending on or after June 15, 2010. The expiration date previously had been for fiscal years ending on or after Dec. 15, 2009.”

To read the entire article, from the Journal of Accountancy, please click the link below:

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  1. RJohnson
    October 5, 2009 at 7:54 PM

    Six months is not enough time for most small companies, especially in this depressed economy. I know the argument…. small companies have had enough time to get compliant, but the costs, especially when hiring outside consultants is steep.

    My guess is that come the new deadline, many will not be ready and compliant. There has to be another way for small companies. This process is going to drive away small companies from the US….

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