Private firms need to recognize today’s business climate demands they are bound by SOX
The SEC’s decision to delay the compliance deadline for Section 404 of the Sarbanes-Oxley Act (SOX) surely had many ‘non-accelerated’ filers breathing easier as a new deadline of June 2007 was announced. But, companies falling under this category need to avoid complacency and take advantage of the extension now to improve internal controls that usually are not managed by large staffs and segregation of duties. The time saved may be critical once testing by internal and external auditors begin.
Non-accelerated filers must also approach SOX differently as something more than the regulatory mandate it is. And, private firms need to recognize that although they are not currently bound by SOX, today’s business climate practically demands that they do it too. For private businesses striving to grow (or possibly seeking an IPO or acquisition), SOX compliance should be seen as an investment strategy.
See full Article.
Posts
