Vote overwhelmingly favors idea of exempting small public companies from some or all of SOX Section 404 requirements.
The SEC's Advisory Committee on Smaller Public Companies yesterday approved a plan under which smaller firms would be exempted from the external audit requirements of Sarbanes-Oxley Section 404.
Only one of the 21 members voted against the plan, in which companies with capitalization less than $125 million would be exempt, although they would face stricter governance rules.
Companies with capitalization between $125 million and $750 million (but revenue less than $250 million) would not have to hire an external auditor to test their financial controls.
The non-binding recommendations will be published in the spring for public comment before the SEC will vote on them.
Source: IT Compliance Institute
