Friday, July 21, 2006
Next from Sarbox: Industry Exemptions
Here's an interesting idea. Great for discussion, but not much of a reality.
Will the next round of public comment call for sector-specific immunity from Section 404?
Dig up evidence of document retention procedures for auditors, or work on a viable treatment for prostate cancer. Print out screen shots that support testing of general computer controls, or answer an important phone call from a high net worth client. The choice is obvious for biotech and community bank executives who contend that meeting the Sarbanes-Oxley Act's Section 404 requirements are diverting money and attention away from conducting business in a more efficient manner.
The evolution of the argument, at least for the next round of public comment on Section 404, may be a call for industry-specific exemptions. To be sure, if the neither the Securities and the Exchange Commission or Congress see clear to providing small company immunity, then industry lobbyist may take a different tack, this time aimed at convincing regulators and lawmakers that sector-specific 404 exceptions are needed.
posted by Brian Moran @ 10:36 AM