In this economy where companies are cutting costs left and right, the SEC’s final rulemaking release on September 15, 2010 was a relief. The release eliminates the requirement for newly public companies and smaller public companies (i.e., non-accelerated filers – Exchange Act reporting company that has a public float under $75 million or that fails to meet other criteria for an “accelerated filer”) to include auditor attestation reports with respect to internal control over financial reporting in their annual reports.
Non-accelerated filers will remain subject to the requirements of Section 404(a) of Sarbanes Oxley and related rules that require a management report on internal control over financial reporting in annual reports filed with the SEC. The new rules will take effect upon publication in the Federal Register.
The change is thanks to the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). Not only does this change reduce the stress factor but also saves smaller organizations some money, we all know that audit fees are not cheap!
