January 13, 2005
Lobbyists Contest Legitimacy of Sarbanes-Oxley for Smaller Firms
Since the first deadlines for larger companies have finally passed, now the attention is turned to smaller firms regarding the question of appropriateness of Section 404 to smaller companies. The problem is that if you decide to access public markets, then market cap should not matter. Maybe there should be a two year ramp for smaller companies. This way they can access the public markets and become larger before they comply. But if they are fully exempted, this would create loopholes that no doubt would be accessed by larger companies.
An excerpt on this topic is here:
"The group argues that while the provision is appropriate for firms of 250,000 workers, its intentions are mislaid when it comes to businesses employing just 250 people. The cost of maintaining such controls can reach a staggering $500,000 per year, according to a study by CFO magazine. The lobbying group argues the cost, which includes the retention of auditors, is beneficial to the accounting industry, but excessive for small public companies." For the full article, click here.
If your company is small to mid sized, learn more about rapid and effective Sarbanes-Oxley compliance at www.issuescentral.com
An excerpt on this topic is here:
"The group argues that while the provision is appropriate for firms of 250,000 workers, its intentions are mislaid when it comes to businesses employing just 250 people. The cost of maintaining such controls can reach a staggering $500,000 per year, according to a study by CFO magazine. The lobbying group argues the cost, which includes the retention of auditors, is beneficial to the accounting industry, but excessive for small public companies." For the full article, click here.
If your company is small to mid sized, learn more about rapid and effective Sarbanes-Oxley compliance at www.issuescentral.com
