Adopt policies that encourage and promote dissemination of smaller public company
Key issues identified in the public company
sample reports include utilizing the web to deliver information; allowing users to clickthrough for more report details; providing a range of estimates rather than a single number in reporting earnings projections; and leveraging XBRL to help users identify the financial information most relevant to them.
The new rules promoting the ethics and independence of public company
auditors "draw clear lines to distinguish inappropriate services that impair auditor independence from permissible services that are not detrimental" according to PCAOB Chair William J.
Kueppers, chairman of the Center for Public Company
Audit Firms Executive Committee.
However, SECPS member firms made it clear that the AICPA should play an important role for them in the new regulatory environment by representing public company
audit firms before the SEC and PCAOB, keeping them abreast of issues, and maintaining a peer review program for the firms' non-issuer practices that enables them to meet their state licensing, federal regulatory and AICPA membership requirements.
Sarbanes-Oxley and the subsequent standards from the Public Company
Accounting Oversight Board (PCAOB) add a new layer of complexity to firm management: Auditors of public companies have new rules to follow while other firms must keep a careful eye on the changing environment.
This model sends a loud and clear message that the era of self-regulation of the accounting profession is over," said Securities and Exchange Commission Chairman Harvey Pitt in describing the commission's far-reaching plan to regulate auditors of public company
In its response to the questionnaire, FEI's Small Public Company
Task Force supported this recommendation: "The delay in the compliance date of Section 404 will provide more time .
The AICPA Center for Public Company
Audit Firms began operations January 1, 2004, as a voluntary membership organization for firms that audit or are interested in auditing public companies.
Now, in the wake of The Sarbanes-Oxley Act of 2002, the cost and exposure of being a public company
has never been higher--due to the dramatically increased regulatory, insurance and compliance costs, the surge in shareholder litigation and the overall decline in the public markets.