FOR IMMEDIATE RELEASE
ICBA Applauds SEC for Extending Implementation of SOX Section 404 Audit Rules
Washington, D.C. (August 9, 2006)—The Independent Community Bankers of America (ICBA) applauded the Securities and Exchange Commission for extending the date by which non-accelerated filers must begin to comply with the Sarbanes Oxley Section 404(b) requirement to provide an auditor's attestation report on internal controls.
"We commend the SEC for extending the deadline for non-accelerated filers" said Karen Thomas, ICBA executive vice president for government relations. "The extension will not only mean lower auditing fees next year for many community banks and other smaller companies but will allow them an additional year to consider, and adapt to, the proposed changes in Auditing Standard No. 2 that the Commission and the Public Company Accounting Oversight Board intend to make."
Calendar year non-accelerated filers will only have to complete the management's portion of the internal control requirements next year. But in 2008, they will be subject to the auditor's attestation requirements of Section 404 (b) of SOX.
To reduce unnecessary regulatory burden, ICBA has recommended that smaller public companies be completely exempt from SOX 404 and that Auditing Standard No. 2 be revised and scaled to the size of the company so that community banks are not subject to the same auditing requirements as large banks.