January 26, 2005 -- The Committee on Sponsoring Organizations of the Treadway Commission (COSO) announced on January 12, 2005 that it will be providing guidance to small businesses on complying with the new rules for internal controls as mandated by the Sarbanes-Oxley Act. COSO, formed in 1985, consists of the American Institute of Certified Public Accountants (AICPA), Financial Executives International, the Institute of Management Accountants and the Institute of Internal Auditors . 

The new initiative, Implementing the COSO Control Framework in Smaller Businesses, is not intended to replace or modify the original COSO Control Framework, but rather it will demonstrate its broad applicability by providing control examples that smaller businesses can use to achieve their financial reporting objectives.  The new guidance is expected to be available online by June 30.

If you are an existing small business registrant or a small business contemplating entering the Securities Exchange Act of 1934 reporting system, you will want to consider the impact of this guidance as you begin planning for compliance with Section 404 of the Sarbanes-Oxley Act.

For more information, call Joe Beach at 215-564-1900 .

Back to News Archive