One-year Delay on 404 in the Works

SEC Chairman Christopher Cox is asking his fellow commissioners for another one-year reprieve for smaller businesses.

Sarah Johnson, CFO.com | US
December 12, 2007

Correction

Thanks for catching that error. The article now, refers, correctly, to "Section 404(b), the auditor attestation requirement."

Posted by david katz | December 13, 2007 09:30 am

Delay in Audit Report, not Section 404

For purposes of clarification, the SEC Chairman is recommending a delay in the AUDITOR REPORT not a delay in complying with the Company's SECTION 404 MANAGEMENT ASSESSMENT. There are two different studies. Companies will year ends after 12/15/07 would still need to comply with internal control requirements and documentation under SOX Section 404. The auditors however, may get another year reprieve (which will save smaller public companies on auditor fees - since under PCAOB standards the auditors also have to test internal controls). This is good news for smaller public companies. It will save on audit fees. But a delay in Section 404 Management Assessments is not in the picture. It is still due this year.

Posted by Bob Benoit | December 13, 2007 08:56 am