SEC gives smaller public companies a little breathing room on auditor attestation

Prominent international business law firm, Torys, issued a bulletin today on the SEC’s decision to grant a six-month extension for smaller public companies to comply with the auditor attestation requirement under section 404 of the Sarbanes-Oxley Act of 2002 (commonly referred to as SOX).  According to Torys, the extension benefits SEC-reporting issuers that are “non-accelerated” filers.  Generally, this means companies with a public float of less than $75-million (U.S.), including those (like many Canadian healthcare companies) that are foreign private issuers.  With the extension, the auditor’s attestation will be required in annual reports for fiscal years ending on or after June 15, 2010, instead of December 15, 2009.

Torys noted that Canada’s own internal control rules have been in effect since the beginning of 2009, but no auditor attestation is required in this country for any issuers, regardless of size.