SEC extends compliance SOX 404(b) compliance date for non-accelerated filers

By Cydney Posner

The SEC has approved a one-year extension of the compliance date for smaller companies to meet the SOX 404(b) auditor attestation requirement. As a result, non-accelerated filers will not be required to provide auditor attestation reports until their annual reports for fiscal years ending on or after December 15, 2009. They will, however, still be required to provide the SOX 404(a) management assessment of the effectiveness of the company's internal control over financial reporting. The extension was formally proposed in February (see post on 2/01/08) along with a proposed study of the costs and benefits of SOX 404 for smaller companies. The SEC also announced today that OMB has approved commencement of that study, which is to be completed during the extension period. The cost-benefit study will help determine whether the new guidance issued by the SEC in June 2007 on management's evaluation of internal control over financial reporting and the PCAOB's AS No. 5, approved in July 2007, are facilitating more cost-effective internal control evaluations and audits (see posts on 6/8/07 and 6/22/07).

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