SEC Won't Relax SOX For Small Companies

Law360, New York (May 17, 2006, 12:00 AM EDT) -- Despite recommendations from its own advisory committee to exempt small companies from the internal control requirements mandated by the 2002 Sarbanes-Oxley Act, the U.S. Securities and Exchange Commission will hold all publicly traded companies to the same standard.

Small companies will still have a brief suspension from Section 404 of the Act — which deals with internal controls — but after that, they will be held to the same accounting and disclosure standards as corporate giants.

In April, the Advisory Committee on Smaller Public Companies had...
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