Analysis of Sarbanes-Oxley – Section 404
And
Affect on Small Companies
Content
I. Executive Summary 1
II. Background Facts 2
III. Issue Stated 3
IV. Analysis 4-5
V. Conclusion 6
VI. References 7
Executive Summary
404 of Sarbanes Oxley: It’s affect on small business.
The implementation of section 404 of Sarbanes-Oxley's has presented challenges for many U.S businesses. The implementation rules and guidelines have imposed significant cost and time restraints. Small companies are disproportionately getting hit harder then the larger companies. Financially the smaller companies have disadvantage and can not take on the same rules and guidelines as large companies. The cost involved in implantation and compliance will cost small companies on average
Banks, insurance companies and mutual funds generally do not invest in the companies comprising the bottom 6 percent of market capitalization.
Small companies are not stewards of our national wealth in the same way as large companies. The risk to the economy from the collapse of a small public company is limited not only by its size, but also because the effects of such a collapse would not ripple very far out into the economy. Even a major Enron-style debacle at a small company -- indeed, even the failure of a fair percenta ...