Accounting News

Thursday, September 22, 2011
House Debates SOX Exception

Representative Stephen Fincher of Tennessee has introduced a bill to permanently exempt corporations with less than $500 million in outstanding company shares from some sections of Sarbanes-Oxley. The biggest on of note being the 404(b) rule that requires and outside auditor to review the company's internal controls. Currently company's with less that $75 million in outstanding shares are exempted from the rule.

Sarbanes-Oxley (SOX) was enacted in 2002 in response the accounting scandal at Enron and WorldCom. It was supposed to provide better auditing and transparency with accounting practices.

There is partisan divide over the changes to the law. It is unclear if it has the support to pass the Senate.