Making SOX fit better

Small companies have howled about the onerous requirements of complying with the Sarbanes-Oxley Act of 2002 since it came into effect. It now looks as if the authorities have heard their pleas. If the Securities and Exchange Commission accepts the recommendations of an advisory committee, smaller companies could find it easier and less expensive to comply with SOX.

The commission's Advisory Committee on Smaller Public Companies voted last week to recommend reducing the burden for smaller companies to comply with SOX's Section 404 governing internal controls. It endorsed exempting public companies with a market capitalization of $125 million or less from testing internal controls or hiring an outside auditor to attest to the effectiveness of internal controls. ...