Small public companies have reason to believe they soon will be exempt from the rigorous and expensive auditing requirements imposed by the federal Sarbanes-Oxley Act.
Unless they are excused, the companies would need to devote staff time and money - resources that would otherwise would be used for operations - to comply with the law, which was written primarily to address issues at huge companies.
Compliance deadlines have been moved back several times for the smallest of the nation's public companies, and now a Securities and Exchange Commission panel has recommended that those businesses need not comply with some or all of Section 404 of the act.
A final report by the Advisory Committee on Smaller Public Companies will be presented to the SEC commissioners in April for approval. Officials at Buffalo's Rand Capital Corp. are hoping for a decision favorable to small public companies like theirs.
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