Big4Guy

Sarbanes Oxley is here to stay. Even though there had been speculations that the act would be repealed, but this seems unlikely. However, changes to the act are expected. SEC included small businesses under the purview of the SOX act. Though there is some relief for such small businesses since they have one year extension to file their first management report. For non-accelerated filers, they have one additional fiscal year ending after 15th December 2008 to carry out an auditor's attestation of internal controls.

Many small companies have a lmited budget for regulatory compliance. Small companies require a practical approach towards SOX compliance. Rules for Sarbanes Oxley which apply to big businesses also apply to small companies. Only the approach towards applying those rules has changed. Specifically speaking, I can atleast list down three things small companies should not do in their Sarbanes Oxley compliance route.

1. Don't look at compliance as a one time event. It is better to look at compliance in an integrated manner so as to be sustainable in the long term.

2. Ignoring other regulatory & legal compliances. Most companies get lost in trying to comply with SOX. Infact SOX should be seen as a possibility to comply with other laws which apply to the industry. This can be achieved by taking a synergistic approach towards compliance.

3. Don't delay compliance with SOX. SEC extensions in should not be looked as an excuse for sarbanes oxley compliance. The sooner small companies start their efforts, the more efficient compliance will be in the long run.

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