The SEC has proposed a one-year delay in the requirement for an audit of internal controls over financial reporting for smaller public companies (i.e., those that are not required to file annual and quarterly reports on an accelerated basis). Currently, the auditor’s attestation report on internal control over financial reporting is required when a smaller public company (i.e., non-accelerated filer) files an annual report for a fiscal year ending on or after December 15, 2008. It should be noted that a one-year grace period, if finalized, would not relieve smaller public companies of the obligation to provide management’s report on internal control over financial reporting for annual reports for fiscal years ending on or after December 15, 2007.
We want to emphasize that this proposed delay in the requirement for an audit of internal controls over financial reporting for smaller public companies has not yet been finalized by the SEC. You should monitor the SEC's Web site or McGladrey & Pullen's Web site for updates.
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