How does Sarbanes-Oxley Affect My Company?

Sarbanes-Oxley affects small cap companies listed on the OTC:BB, as well as large companies listed on the major exchanges. The only difference is in when they must be in compliance. The CEO and CFO must now sign off personally on the corporate financials and policies, procedures and testing of the systems.

If you are pretty much a one man show, you also might find yourself in a position where you have to hire extra people or do more outsourcing, because the same person is prohibited from doing a number of tasks that have to be done independently so as to keep a check and balance on the integrity of the process.

Your Board of Directors may have to be expanded with “outside” directors, because your auditor no longer reports to the President or CEO, but to the Chairman of the Audit Committee of your Board.