SEC committees suggest SOX 404 exemptions for small and micro-cap firms
Subcommittees of the SEC's Advisory Committee on Smaller Public Companies last week presented some preliminary proposals that would grant smaller firms certain exemptions to Sarbanes-Oxley Section 404 auditing requirements.
Official proposals will not be submitted until December 14.
The Internal Control Subcommittee suggested that micro-cap firms (less than about $125 million) should be exempted from the requirements for auditor attestation of internal controls. But the committee had not agreed about exempting them from management report requirements concerning internal controls.
Small firms (larger than micro-cap but smaller than $700 million) would get similar exemptions. The subcommittee recommended that auditors review but not audit internal controls.
Source: IT Compliance Institute
