Sarbanes-Oxley Section 404 and Affect on Small Business

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Recommended: EFFECTS OF OF SARBANES OXLEY ACT ON COMPANIES

Analysis of Sarbanes-Oxley – Section 404

And

Affect on Small Companies

Content

I. Executive Summary 1

II. Background Facts 2

III. Issue Stated 3

IV. Analysis 4-5

V. Conclusion 6

VI. References 7

Executive Summary

404 of Sarbanes Oxley: It’s affect on small business.

The implementation of section 404 of Sarbanes-Oxley's has presented challenges for many U.S businesses. The implementation rules and guidelines have imposed significant cost and time restraints. Small companies are disproportionately getting hit harder then the larger companies. Financially the smaller companies have disadvantage and can not take on the same rules and guidelines as large companies. The cost involved in implantation and compliance will cost small companies on average

Banks, insurance companies and mutual funds generally do not invest in the companies comprising the bottom 6 percent of market capitalization.

Small companies are not stewards of our national wealth in the same way as large companies. The risk to the economy from the collapse of a small public company is limited not only by its size, but also because the effects of such a collapse would not ripple very far out into the economy. Even a major Enron-style debacle at a small company -- indeed, even the failure of a fair percentage of such companies -- would hardly affect the wealth of the nation at all.

The cost of complying with SOX 404 impacts smaller companies disproportionately, as there is a significant fixed...

... middle of paper ...

...2,sid182_gci1189162,00.html?asrc=SS_CLA_308970&psrc=CLT_182

SOX spending is down, but CIOs still have work to do

By Linda Tucci, Senior News Writer

16 Aug 2007 | SearchCIO.com

http://searchcio.techtarget.com/news/article/0,289142,sid182_gci1268327,00.html?asrc=SS_CLA_308970&psrc=CLT_182

What’s Next In SOX 404 For Smaller Public Companies?

Page 36 The Metropolitan Corporate Counsel October 2006

Help Websites

http://www.amper.com/publications/sec-section-404-compliance.asp

http://iblsjournal.typepad.com/illinois_business_law_soc/2005/10/will_time_help_.html

http://www.amper.com/publications/sarbanes-oxley-small-businesses.asp

http://www.law.com/jsp/ihc/PubArticleFriendlyIHC.jsp?id=1146733529444

http://www.foxnews.com/story/0,2933,196044,00.html

http://www.pro2net.com/x42491.xml

http://www.sec.gov/info/smallbus/acspc/acspc-finalreport.pdf

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