FOR IMMEDIATE RELEASE
ICBA Backs SOX Efficiency Proposal
Shortened Section 404 Audits, Delayed Implementation Urged
Washington, D.C. (December 1, 2006)—The Independent Community Bankers of America (ICBA) urged the Securities and Exchange Commission today to adopt the recommendations of the Committee on Capital Markets Regulation concerning Section 404 of the Sarbanes-Oxley Act.
"We agree with the committee's recommendations concerning rotational audits," said Karen Thomas, ICBA senior vice president/director of government relations. "For those companies with good internal controls, Section 404 audits should be abbreviated and should review only internal controls in high risk areas."
ICBA also agrees with the committee's recommendations that the effective date for Section 404 should be delayed for non-accelerated filers until the SEC issues further guidance under Section 404.
ICBA has previously endorsed the report of the SEC's Advisory Committee on Smaller Public Companies that recommended micro-cap companies be completely exempt from the internal control attestation requirements of Section 404 of the Sarbanes-Oxley Act and that small-cap companies be partially exempted from those internal control requirements.