by Christopher Cox, Chairman, U.S. Securities & Exchange Commission
Before the U.S. House of Representatives Committee on Small Business
Chairwoman Velázquez, Ranking Member Chabot, and Members of the Committee:
Thank you for inviting me to testify on behalf of the Securities and Exchange Commission concerning the costs and benefits of section 404 of the Sarbanes-Oxley Act for small businesses.
The Commission and this Committee share an abiding concern for America's smaller public companies. Since the Sarbanes-Oxley Act became law in 2002, large public companies have come into compliance with section 404 regarding internal controls. But to address concerns from smaller public companies, the SEC has not applied section 404 to smaller companies. In addition, we recently issued guidance intended to make the process for smaller public companies more economical and efficient when eventually they do come into compliance.
See full Testimony.
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