Publisher: Reuters Author: Nate Raymond The U.S. Securities and Exchange Commission's controversial use of in-house…
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.
