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SEC Approves One-Year Extension of SOX Section 404(b) Compliance Date for Non-Accelerated Filers

June 26, 2008


On June 20, 2008, the Securities and Exchange Commission announced that it has approved a one-year extension for compliance by non-accelerated filers with the auditor attestation requirement of Section 404(b) of the Sarbanes-Oxley Act. Section 404(b) requires an annual attestation by the registrant’s external auditor on management’s assessment of the effectiveness of the registrant’s internal controls and procedures for financial reporting. A “non-accelerated filer” is a registrant that is not an accelerated filer. An “accelerated filer” is a registrant that: (1) has an aggregate worldwide non-affiliated common equity float of $75 million; (2) has been public for at least one year; (3) has filed at least one annual report under the Securities Exchange Act; and (4) does not qualify as a smaller reporting company. Non-accelerated filers include both smaller equity registrants and debt-only issuers.