CPAs and Advisors with Your Growth in Mind

Senate Bill Gives Sarbanes-Oxley Exemption to Small Banks

Banks holding less than $1 billion in assets could receive an exemption from the auditor attestation requirements of Section 404(b) under the Sarbanes-Oxley Act of 2002. Under S. 1962, the Community Bank Access to Capital Act of 2017, the proposed Senate bill frees smaller banks from the more complicated and expensive reforms under Sarbanes-Oxley. S. 1962 also requires public companies to hire an external auditor to attest to management’s internal controls over financial reporting. The bill’s co-sponsor, Senator Mike Rounds (R-S.D.), stated the proposed measure would promote growth among community banks and help them support their communities. Section 404(b) advocates. Read More.

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James Doty to Step Down as PCAOB Chairman, Will Help with Transition

James Doty, current chairman of the Public Company Accounting Oversight Board (“PCAOB”) of the Securities and Exchanges Commission (“SEC”), will step down once the commission has found his successor, according to an SEC announcement on August 11, 2017. Once that successor has been found and named, a date for Doty’s final day will be announced. The SEC has the authority to appoint PCAOB members under the Sarbanes-Oxley Act of 2002. Doty has been in office since 2011, and his term expired in 2015. During the early years of his term, he worked for investor protections.

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Biotech Executive Pushes for Additional Sarbanes-Oxley Exemption

Several business lobbyists say Section 404(b) in the Sarbanes-Oxley Act of 2002 requiring auditors to attest clients’ internal controls create unnecessary expenses to public companies. In response, lobbyists are asking Congress to give additional exemptions for small and medium-sized companies. Representing the Biotechnology Innovation Organization during a July 18 hearing by the House Financial Services Committee, aTyr Pharma Senior Vice President John Blake testified that biotech companies currently developing drugs do not pose the same risks as bigger companies do with their financial reporting systems. Blake believes minimal benefit is gained from the auditor attestation requirements regarding financial reporting controls.. Read More.

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FASB 2017 Accounting Support Fee Approved

The Securities and Exchange Commission (“SEC”) has approved the fees that the Financial Accounting Standards Board (“FASB”) uses to aid operations. In issuing Release No. 33-10297, Order Regarding Review of FASB Accounting Support Fee For 2017 Under Section 109 of the Sarbanes-Oxley Act Of 2002, the SEC requested that the FASB review the financial reporting taxonomy for presenting financial statements in the eXtensible Business Reporting Language. The FASB must also submit its findings prior to the SEC’s consideration for the 2018 support fee. In addition, the SEC wants to be informed about the FASB’s filled vacancies and efforts to improve. Read More.

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Civil Monetary Penalties Adjusted for Inflation

A final rule has been introduced to carry out the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015. The final rule implements the first annual inflation adjustment of Securities and Exchange Commission-issued (“SEC”) civil monetary penalties under the following: Securities Act of 1933 Securities Exchange Act of 1934 Investment Company Act of 1940 Investment Advisers Act of 1940 Certain penalties under the Sarbanes-Oxley Act of 2002 Violations that occurred after November 2, 2015, will be impacted upon the final rule’s effective date. For violations on or before that date, the SEC will reinstate penalty amounts in its previous adjustments as. Read More.

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