Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Small-Company Execs Sound Off on 404

Small-Company Execs Sound Off on 404

by Rick Turoczy on April 5, 2006

The participant list is still a work in progress. Judging by the comment letters on the Securities and Exchange Commission’s website, however, the SEC’s upcoming Section 404 roundtable will feature a great deal of heated talk about how hard and costly it is for small companies to comply with the internal-controls provision of the Sarbanes-Oxley Act.

Currently, 21 comment letters concerning companies’ second-year experiences in complying with the provision with are posted on the SEC site. Of those, about half specifically call for some type of small-company exemption from Section 404 as a way to ease the high costs if compliance. In one letter, Hamp Haucke, a vice president at Timco Aviation Services, complains that the company spent more on Sarbox compliance in 2005 than it earned in net income. At Timco, which has a market capitalization of under $83 million, “it appears likely that 2006 will be a repeat performance, ” he writes.

Small-Company Execs Sound Off on 404

Leave a Comment

Previous post:

Next post: