The guidance, released at a July 11 Web cast, is intended to assist smaller public companies
to implement more effective internal control systems and ultimately to result in more proficient compliance with the Section 404 internal control reporting requirements of the Sarbanes-Oxley Act.
The first primary recommendation is to establish a new system of scaled securities regulation for smaller public companies
The Securities and Exchange Commission established an Advisory Committee on Smaller Public Companies
to advise it on how to apply Sarbox to these smaller companies.
The Center for Public Company Audit Firms (CPCAF) is a voluntary membership organization for CPA firms that audit or are interested in auditing public companies
In the seven of eight ION regions for which board turnover was analyzed a total of 539 new independent directors were elected to the boards of the public companies
examined during 2006.
Such a designation could require passage of an additional exam focused on disclosure requirements for public companies
and ethical issues faced by CAOs.
For example, our advisory group that advises us in the standard-setting area includes, in addition to practicing auditors, investors and public companies
that issue the financial statements.
Sarbanes-Oxley and the subsequent standards from the Public Company Accounting Oversight Board (PCAOB) add a new layer of complexity to firm management: Auditors of public companies
have new rules to follow while other firms must keep a careful eye on the changing environment.
Both the Senate bill and the SEC's proposed rule raise some uncertainties about whether auditing professionals will continue to remain actively engaged in setting standards and whether auditors will have sufficient latitude to respond to the needs of both investors and public companies
I look forward to working with members of MCPAC to ascertain how the practice of 'naked shorting' is causing smaller public companies
to go out of business or impacting others' market prices despite their good business developments, and then bringing the issue to the attention of the federal government," said Mr.
Much has been said and written lately about the regulatory burdens that are falling on smaller public companies
in the wake of reform measures such as the Sarbanes-Oxley Act.
The AICPA Center for Public Company Audit Firms began operations January 1, 2004, as a voluntary membership organization for firms that audit or are interested in auditing public companies