Removal of SOX? 2891

  • Dear All,
    I have heard a rumor that SOX may be removed or that the US-listed company may not necessarily need to compile with it as currently required.
    Anyone heard about it or have any comment.
    Please advise.

  • Look down a few posts for the post on the Dodd Frank Act. This act repeals the SOX requirement for smaller businesses.

  • Thank you.
    My understanding is that this new legislation removes the applicability of SOX404(b) to the non-accelerated filer only (not the small public company. Non-accelerated filer is not equal to the small public company).
    For the non-accelerated filer, they still need to have the internal control over the financial statements. Just the auditor no need to do the attestation and form the opinion on the effectiveness of the internal control over the financial statements.
    Am i right? Anyone can advice?

  • You may visit:
    The Dodd Frank Act has amended some sections of the Sarbanes Oxley Act, and that means that Sarbanes Oxley is an important building block of the new regulatory regime.
    Make no mistake: The need for strong internal controls is always critical, and the new whistleblower provisions of the Dodd Frank Act will make companies much more careful.

  • Understand but down to the earth, if there is no need for the auditor to do the attestation, do you think the company would take it as serious as before (that the auditor need to do the attestation)?

  • From the AICPA summary -
    ‘SOX section 404(b) exemption. The act amends Sarbanes-Oxley (SOX) to make permanent the exemption from its section 404(b) requirement for nonaccelerated filers (those with less than USD75 million in market cap) that has temporarily been in effect by order of the SEC. The act also requires the SEC to complete a study within nine months of the act’s enactment on how to reduce the burden of 404(b) compliance for companies with market caps between USD75 million and USD250 million. The study will consider whether any such methods of reducing the burden, or a complete exemption, would encourage companies to list on exchanges.’

Log in to reply