Organization

California Polytechnic University, Pomona

Project Description

A Study to Determine How Small Firms Will React to Section 404 of the Sarbanes-Oxley Act

Project Abstract

The purpose of this research is to determine if the Sarbanes-Oxley Act of 2002 is going to place a burden on small firms. Specifically, there has been much debate regarding Section 404 compliance being a disproportionately high cost for small firms compared to larger firms. The date for compliance has been extended twice for small firms to further examine the affects of SOX on these firms. The results have been varied and incomplete, but the consequences of finding the right balance is crucial to the economy and the success of small firms. As it currently stands, small firms will be forced to comply with all rules.

A study will be conducted to find out if small firms can bear these costs and still be competitive, both globally and domestically. If the results support that they indeed can�t bear these costs, the study will reveal what is excessive and should be lessened or eliminated.

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