FOR IMMEDIATE RELEASE
ICBA Urges SEC to Defer SOX Section 404 Due Dates
Washington, D.C. (Sept. 15, 2006)—The Independent Community Bankers of America (ICBA) asked the Securities and Exchange Commission (SEC) to defer for two years the Sarbanes-Oxley Section 404 due dates for internal control reports and audits for non-accelerated filers to give community banks sufficient time to understand and apply changes to auditing guidance.
"ICBA commends the SEC for proposing a deferral in the Section 404 due dates for non-accelerated filers," said Chris Cole, ICBA regulatory counsel. "However, a one-year deferral isn't sufficient time for non-accelerated filers and their auditors to benefit from the anticipated changes that the Public Company Accounting Oversight Board (PCAOB) plans to make to Auditing Standard No. 2 to help address concerns that Section 404 auditing costs have been unnecessarily excessive for smaller companies. The SEC should defer the Section 404 due dates by at least two years."
Without the deferral, non-accelerated, calendar-year filers would have to file the management internal control report in the 2006 annual report and the auditor's attestation in the 2007 annual report. If the SEC delays the due dates by two years, calendar-year filers will have until their 2008 annual reports are due to file their management internal control reports and until their 2009 annual reports are due to file the auditor's attestation report. ICBA said that the deferral will give management more time to understand and apply the new guidance that the SEC and PCAOB will be issuing, as well as the recent guidance issued by the Committee of Sponsoring Organizations.
Read ICBA's letter to the SEC at www.icba.org.