Many firms may fail to comply with Sec. 404, SEC says.

• Position: SOX News - Brief Article

Many companies may fail to comply with Sec. 404 of the Sarbanes-Oxley Act in time to meet the coming Nov. 15 deadline, said SEC Chief Accountant Donald Nicolaisen.

"A number of companies will announce that they have material weaknesses in their controls," in the coming months, Nicolaisen said at a speech Oct. 7.

The Sec. 404 requirement, which deals with internal controls, has been a costly endeavor for most...