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Compliance Hotline
GAO Study Shows Higher Compliance Costs for Smaller Public Companies
In a report issued on May 8, the Government Accountability Office analyzed the impact of the Sarbanes-Oxley Act (SOX) on smaller public companies. The report focused on compliance costs; described suggested responses of the Securities and Exchange Commission and Public Company Accounting Oversight Board to concerns raised by smaller public companies; and analyzed smaller public companies' access to auditing services and the extent to which the share of public companies audited by mid-sized and small accounting firms has changed since SOX was passed. The report found that for smaller public companies ($700 million or less in market capitalization), the cost of compliance was disproportionately higher (as a percentage of revenues) than for large public companies, particularly with respect to the internal control reporting provisions in ' 404 and related audit fees. The report further stated that the costs associated with complying with SOX, along with other market factors, may be encouraging some companies to become private. Though the number of companies going private was small (2% of public companies in 2004), the full impact of SOX on smaller public companies remains unclear because most have not fully implemented ' 404.
Regarding access to accounting services, the report stated that smaller public companies have been able to obtain audit services and that many moved from the largest accounting firms to mid-sized and small firms. The reasons for these changes range from audit cost and service concerns cited by companies to client profitability and risk concerns cited by accounting firms, including capacity constraints and assessments of client risk. Overall, mid-sized and small accounting firms conducted 30% of total public company audits in 2004 ' up from 22% in 2002. However, large accounting firms continue to dominate the overall market, auditing 98% of U.S. publicly traded company sales or revenues.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?