House Committee Approves Permanent Exemption from Sarbanes-Oxley Section 404(b) for Small Businesses. The House Financial Services Committee passed H.R. 3817, the Investor Protection Act. The bill includes an amendment, introduced by Representatives Scott Garrett and John Adler, which would permanently exempt small public companies from complying with Section 404(b) of the Sarbanes-Oxley Act of 2002. Section 404(b) requires a registrant to provide an auditor’s attestation report on management’s assessment of internal control over financial reporting. The bill must still be voted on by the entire House of Representatives.
As reported in our Daily News for October 15, 2009, the SEC issued a final rule, Internal Control over Financial Reporting in Exchange Act Periodic Reports of Non-Accelerated Filers, extending the deadline when all non-accelerated filers are required to comply with Section 404(b) to annual reports filed for fiscal years ending on or after June 15, 2010. Presumably, if the Investor Protection Act is signed into law as currently written, non-accelerated filers would be provided permanent relief from the requirements of Section 404(b).
A press release on the approval of the bill discussed above is available at:
http://www.house.gov/apps/list/press/financialsvcs_dem/pressipa_100409.shtml
A press release on the bill discussed above is available from Rep. Adler’s website at:
http://adler.house.gov/index.php?option=com_content&view=article&id=343:house-financial-services-committee-considers-adler-amendment-to-protect-small-businesses&catid=39:2009-press-releases&Itemid=59
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