SEC announces extension for small business SOX compliance.

The SEC is extending the deadline for small public companies to comply with Sarbanes-Oxley (SOX) Section 404 internal control rules until July 2007.

Public companies with a market capitalization of less than $75 million will now have another year to review their financial controls. This is the second extension from the SEC.

The unanimous decision came in response to concerns that compliance is overly burdensome and costly for smaller public companies.

The SEC also proposed to shorten the time larger public companies have to file year-end financial reports. Companies worth $700 million or more would have to file annual reports within 60 days of their fiscal year-end, down from 75 days.

This article ran in the Ohio e-CPA Weekly on Sept. 28.