The Securities and Exchange Commission, bowing to complaints that the Sarbanes-Oxley Act puts too big a burden on small companies, said yesterday that the deadline for them to comply with new auditing rules should be put off until the end of next year.
The S.E.C. proposed delaying by six months the July 15, 2007, date for small companies to start reporting whether financial controls promote accurate reports and prevent fraud. The companies could also wait until the end of 2008 to have outside auditors test and certify their controls.
Executives at small companies have said such audits are so costly they wipe out much or all of their profit, and some have gone private to escape the burden.
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