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SOX 404 Auditor Assessment Not Required for Smaller Reporting Companies

On Wednesday, July 21, 2010, the Dodd-Frank Act took effect which, among other measures, exempts smaller reporting companies from the Sarbanes-Oxley (SOX) requirement under Section 404(b) for an auditor report on management’s assessment of internal controls over financial reporting.

Under the new law, exempt companies are those that are “non-accelerated filers” which are defined by the SEC© as company with non-affiliated market capitalization under 75 million or more, measured at the end of the previous year’s second quarter.

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