The Securities and Exchange Commission reportedly has decided to reject a recommendation, issued last month by an advisory panel, to exempt small firms from the internal-control reporting requirements of Sec. 404 of the Sarbanes-Oxley Act. Instead, according Reuters, citing a source familiar with the matter, the Public Company Accounting Oversight Board, which oversees corporate auditors, will focus on companies that pose higher risks of fraud or material error. There has been no comment yet from Rep. Tom Feeney (R-Fla.), who was expected to introduce a bill in Congress that, among other things, would have exempted firms with market capitalizations of under $700 million from Sec. 404 requirements.
