While the costs associated with complying with the Sarbanes-Oxley Act may be falling, small and medium-sized businesses (SMBs) still have work to do. Take our quiz to get caught up with the latest in Senate rulings and compliance costs. When you're done, let us know what kind of Sarbanes-Oxley advice you'd like to see on SearchSMB.com.
In "Sarbanes-Oxley 404 exemption defeat means status quo for SMBs," Senior News Writer Linda Tucci reports that the U.S. Senate snuffed out a Republican-led effort to loosen Sarbanes-Oxley compliance rules for SMBs. Read the story to answer the following four questions:
1. How many Senators voted against the amendment?
2. The defeated amendment would have made compliance with Section 404 optional for SMBs with a total market value of:
a. Less than $70 million
b. More than $700 million
c. Less than $700 million
3. SMBs of what size have already been exempt from providing the audited internal control reports required by Section 404?
a. Less than $100 million in public equity
b. Less than $75 million in public equity
c. Less than $50 million in public equity
4. Who is the chairman of the U.S. Securities and Exchange Commission?
a. Jim DeMint
b. Michael Shokouhi
c. Christopher Cox
In "Sarbanes-Oxley compliance costs drop, better processes credited," News Writer Shamus McGillicuddy reports that a new survey found that Sarbanes-Oxley compliance is getting cheaper. Read the story to answer the following four questions:
5. How much did the average company's Sarbanes-Oxley compliance costs drop to in 2006?
a. $2.9 million
b. $3.8 million
c. $4.5 million
6. How many hours did the average company spend on implementing IT-based controls in 2006, according to the study?
7. How much did external auditor fees drop by in 2006?
8. Compared with the $1.67 million spent by companies with consolidated IT systems, how much did decentralized companies with multiple systems report spending on compliance in 2006?
a. $2.53 million
b. $3.79 million
c. $4.86 million
In "Sarbanes-Oxley advice for smaller, public companies," expert James Champy offers some tips for those trying to do more with less in achieving compliance. Read his column to answer the following two questions:
9. What are some of the compliance challenges for smaller companies?
a. They typically don't have full-time financial controllers.
b. Managers have a broad span of control.
c. Lack of well-documented processes.
d. All of the above.
10. Whom does Champy suggest IT managers at SMBs talk to about controls that need to be operating within your shop and what attestations you will be asked to make?
a. Your CFO
b. Your CEO
c. Both your CFO and CEO