Analysis of Sarbanes-Oxley – Section 404 and its effects on small businessesContentsI. Executive Summary 1II. Basic Facts 2III. Problem stated 3IV. 4-5V analysis. Conclusion 6VI. References 7Sarbanes Oxley 404 Summary: Impacts Small Businesses. The implementation of Section 404 of Sarbanes-Oxley has presented challenges for many U.S. companies. The implementation rules and guidelines have imposed significant cost and time constraints. Small businesses are hit disproportionately harder than larger companies. Smaller companies are at a financial disadvantage and cannot adopt the same rules and guidelines as large companies. The costs related to the installation and adaptation will cost small businesses on average. Banks, insurance companies and mutual funds generally do not invest in companies that make up the bottom 6% of market capitalization. Small businesses are not custodians of our national wealth in the same way as large corporations. The risk to the economy from the collapse of a small public company is limited not only by its size, but also because the effects of such a collapse would not spread far across the economy. Even a major Enron-style disaster at a small company – indeed, even the bankruptcy of a fair percentage of such companies – would hardly have any impact on the nation's wealth. The cost of complying with SOX 404 has a disproportionate impact on smaller companies, as there is a significant fixed...... middle of document......2,sid182_gci1189162,00.html?asrc=SS_CLA_308970&psrc= CLT_182SOX spending is down, but CIOs still have work to doBy Linda Tucci, Senior News WriterAugust 16, 2007 | SearchCIO.comhttp://searchcio.techtarget.com/news/article/0,289142,sid182_gci1268327,00.html?asrc=SS_CLA_308970&psrc=CLT_182What's next for SOX 404 for smaller public companies?Page 36 The Metropolitan Corporate Counsel October 2006Help Websiteshttp://www.amper.com/publications/sec-section-404-compliance.asphttp://iblsjournal.typepad.com/illinois_business_law_soc/2005/10/will_time_help_.htmlhttp://www.amper. com/publications/sarbanes-oxley-small-businesses.asphttp://www.law.com/jsp/ihc/PubArticleFriendlyIHC.jsp?id=1146733529444http://www.foxnews.com/story/0,2933,196044, 00.htmlhttp:// www.pro2net.com/x42491.xmlhttp://www.sec.gov/info/smallbus/acspc/acspc-finalreport.pdf