SOX Center

To help CFOs of smaller companies navigate wisely through the Sarbanes-Oxley compliance process, Lord & Benoit has published a study, “10 Threats to SOX Compliance for Smaller Public Companies.”

The study comes on the heels of actions by the SEC and PCAOB to require smaller public companies to comply with SOX this year.

In summarizing the results, Lord & Benoit suggests this list should be used by CFOs as a starting point for a macro-level risk assessment at smaller public companies. Identifying potential concerns, developing action plans to remediate these risks, and taking quick action can minimize the likelihood of an adverse Section 404 report at the end of the first year of compliance.

SmartPros: Study Outlines SOX Threats for Smaller Public Companies

Bolstered by a series of delays granted by the SEC and highly publicized criticism of Sarbanes-Oxley legislation, many smaller companies are playing the waiting game with Section 404 compliance. With the deadline fast-approaching, smaller companies need to look beyond the hype and accept that SOX is not going away.

Rumors are circulating about the possibility of a last-minute pardon. In light of this, it makes sense to separate fact from fiction. This is especially important as the 2007 deadline for compliance draws near.

It is a fact that larger companies, so-called “large-accelerated” and “accelerated” filers, are experiencing dramatically high costs. One university study estimates that the worldwide, direct and indirect costs in the first year of enforcement cost over $1 trillion dollars. It is also fact that the SEC publicly acknowledged the extreme cost of compliance experienced by large companies and granted delays to smaller public companies (a.k.a. non-accelerated filers).

PRWeb: Small Companies Play the Sarbanes-Oxley Waiting Game