SOX It all sounds like a great idea on the surface, doesn't it?
I'm talking about a proposal floating around Congress to exempt small public companies from having to comply with the onerous and expensive requirements found in Section 404 of the Sarbanes-Oxley Act.
You remember Section 404, right? That's the one that requires finance executives to sign off on their companies' internal controls over financial reporting. When Sarbanes-Oxley was enacted in 2002, Section 404 was at the center of a contentious debate. Small businesses protested, saying the monetary and manpower costs involved in complying with 404 were too steep. In those scandal-ridden post-Enron days, though, those companies had few friends in their corner, so they bit their tongues and took it.
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