October 5, 2005
I think it is rather ridiculous to further extend the timeline of Section 404 compliance date for non-accelerated files.
SOX has been publised with Sectin 302 became effective almost immediately in 2002. Should CEO/CFO of non-accelerated filers have been certifying that their companies have effective internal/disclosure controls, I dont see why Section 404 will need to be delayed.
Such delay may cause misleading reliance of investors such as ourselves on the certification of effective controls provided by the CEO/CFO of these companies, should their declaration were false.
If the companies are small, it will be even easier for them to comply, given the lesser complexity and size of the companies. If after 3 long years of the establishment of SOX, these companies cant even comply, one should question WHY??
As SECE filers, these companies had been drawing funds from the public and therefore should be held responsible to the public. I am not surprised that its these small companies which normally dont have much controls to begin with. These will be more the reasons SEC should ensure that theyre in compliance of SOX to ensure public interests are protected.
Thank you.