SEC extends compliance deadlines regarding internal control; PCAOB approves audit standard for internal control.

• Position: Regulatory matters - Brief Article

The Securities and Exchange Commission (www.sec.gov) in Feb. extended the compliance dates for its rules regarding Section 404 of the Sarbanes-Oxley Act. These rules require a company to include in annual reports a report by management on the company's internal control over financial reporting and the accompanying auditor's report.

Under the new compliance schedule, a company that is an "accelerated filer" as defined in Exchange Act Rule 12b-2 (generally, a U.S. company that has equity market capitalization over $75 million and has filed at least one annual report with the commission), must begin to comply with these amendments for its first fiscal year ending on or after Nov. 15, 2004 (originally June 15, 2004). A non-accelerated filer must begin to comply with these requirements for its first fiscal year ending on or after July 15, 2005 (originally Apr. 15, 2005). The commission similarly has extended the compliance date for related...