March 4, 2008
March 3, 2008
Subject: SEC File No. S7-23-06
To whom it may concern,
This letter is written in regards to the proposed amendments (33-8889) of the temporary rules, which are related to the internal control over financial reporting relative to the periodic reports of non-accelerated filers.
I support the Sarbanes-Oxley Act of 2002 and feel that its application of Section 404 (SOX 404) aids in the movement of all public companies implementing and maintaining internal controls. Which will in turn improve the integrity of financial reporting which is something that is desperately needed to regain consumer confidences and more importantly investors confidences.
The arbanes-Oxley Act of 2002 does not make any distinction based on a publicly traded companys size or complexity, so to make a list of companies that are small and which should be allowed some concessions would be defeating the purpose of the legislation. Furthermore it could cause serious complications for the SEC to be able to guard the publics interest. I feel it is inappropriate to provide relief to micro and small capitalization companies from complying with SOX 404 since it will so obviously weaken investor protection. Since consumers are the key to a good healthy economy I do not see why we would want to excuse certain companies from complying with SOX 404 if it is going to hurt the people who are the key to a successful economy.
The proposed amendment will only cause further inconvenient for investors and prospective investors alike. This is due to the fact that they will have to wait even longer for the assurances provided by the attestation report by the companies auditor on the managements report on ICFR. I do not trust that further extension is justified and would suggest that the SEC maintain, pursuant to rules implementing Section 404 (b) of the Sarbanes-Oxley Act of 2002, requiring that non-accelerated filers include in their annual reports an attestation report of their independent auditor on ICFR for fiscal years ended on or after December 15, 2008. In turn I am therefore not in support of extending this date to December 15, 2009.
I am not in support the amendment since I believe that by extending this date and requiring companies to file their reports by one year from December 15th, 2008 to December 15th, 2009 makes the application of SOX 404 requirements less efficient and effective by reducing investor confidence in the evaluation completed by management. Auditors play a vital role in helping to ensure the integrity of financial reporting and in bringing standardization and discipline to corporate accounting, which in turn enhances investor confidence. Why should we give corporations another break by giving them another loophole when corporations have shown time and time again that we need rules and regulations to monitor business in order to prevent frauds and scandals such as Enron and WorldCom. It is now time to rebuild the consumers confidence in the integrity of financial reporting and bring standardization and discipline to corporate accounting.
I, Stacy Lulloff, am pleased to have the opportunity to comment on the Securities and Exchange Commission proposal to delay for an additional year the implementation of Section 404(b) of the Sarbanes-Oxley act of 2002 for non-accelerated filers. Thank you for taking the time to review my comments on the issues at hand.
Affiliation: Undergraduate Student at the University of Wisconsin La Crosse: Finance Marketing Major Accounting Minor
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