SOX and Small Business
The Securities and Exchange Commission (SEC) has created an advisory committee to look at the impact of federal securities laws including Sarbanes-Oxley (SOX) on small businesses. The 21 members of the Committee on Smaller Public Companies is charged with examining the impact of SOX in three key areas:
- Internal Controls. What financial reporting frameworks are available to smaller companies? How does management assess internal controls and what audit standards exist?
- Corporate Disclosure, Reporting Requirements, and Governance Requirements. How do market capitalization, size and characteristics, accounting standards and financial reporting requirements, differ for smaller firms?
- Securities offerings. What are the processes, requirements and exemptions related to public and private offerings of smaller firms.
“Sarbanes-Oxley Act has already benefited America’s investors enormously and will spur further improvements in our securities markets,” SEC Chairman William H. Donaldson stated upon appointing members to the new committee.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.