Mark Tarallo on Regulatory Compliance and SOX, Section 404 07/30/2009Posted by Morse, Barnes-Brown Pendleton in Attorney News.
Public company compliance attorney Mark Tarallo is featured in this Mass. High Tech article: Compliance brings cost, controversy and opportunity, by Jim Schakenbach. In the article, Tarallo indicates the the biggest challenge for companies right now is cost. “Compliance is enormously expensive in both time and money,” he said. The article states:
According to a report issued by Financial Executives International, the average cost to ensure annual SOX compliance in 2007 was $1.7 million per company. Tarallo added that the most controversial part of SOX, Section 404, has not yet been fully implemented. This section, which addresses documenting and managing internal controls over financial reporting, has been repeatedly deferred by the U.S. Securities Exchange Commission because of the difficulty and high cost of implementation for smaller companies. It is widely feared that when Section 404 is finally implemented it could put a number of companies out of business and drive others into otherwise unnecessary mergers or acquisitions. At this time, the latest Section 404 deferral runs out at the end of 2009.
See the full article here.