Wednesday, August 25, 2010

Small companies and 404 compliance

With financial and regulatory reform underway, companies with market cap under $75 million won't need their auditors to sign off on the internal controls as part of SOx 404. However, management must still comply with meeting the requirements of their assertion as to the adequacy of ICFR.

And that means, that the public accounting firms need to cut their fees for SOx 404 assistance or let more agile and focused professionals and smaller firms do the work. CFO's are coming to realize they can save a lot of money on fees.

I recently talked with a CFO who is now paying less than 1/3 of what he paid last year-for virtually the same work!!