With Sarbanes-Oxley (SOX) deadlines having passed – and more approaching – many companies struggling with compliance and maintenance issues are now asking themselves: is SOX worth it? While compliance with Section 404 of the law (requiring companies and auditors to attest to the quality of internal financial controls) took effect for fiscal years ending after November 15, 2004 for U.S. businesses, foreign companies (and small U.S. companies) have to comply for fiscal years ending after July 2005.
The results of the SEC’s reports on U.S. companies will likely determine the willingness of international businesses to implement SOX controls. In the meantime, current reports show that rather than investing the time and money required to comply with SOX, some foreign corporations are considering not doing business in the U.S. stock market. By not listing with the U.S. exchange, foreign companies avoid the “hassle” of SOX.
This trend is also spilling over to U.S. businesses that are debating a move into the public sector – many are weighing the costs of SOX versus the benefits of becoming a publicly traded company, and the results aren’t always in favor of going public.
See full Article.
Posts
