Sarbanes-Oxley Analysis – Section 404 and the Impact on Small BusinessesContentI. Executive summary 1II. General facts 2III. Problem statement 3IV. 4-5V analysis. Conclusion 6VI. References 7Sarbanes Oxley Executive Summary 404: It Affects Small Businesses. The implementation of Sarbanes-Oxley Section 404 has presented challenges for many U.S. businesses. Implementation rules and guidelines imposed significant cost and time constraints. Small businesses are disproportionately affected compared to large businesses. Financially, small businesses are at a disadvantage and cannot adopt the same rules and guidelines as larger businesses. Implementation and compliance costs will cost small businesses on average. Banks, insurance companies, and mutual funds generally do not invest in companies that represent the bottom 6% of market capitalization. Small businesses are not the managers of our national wealth in the same way as large businesses. businesses. The risk to the economy from the collapse of a small state-owned enterprise is limited not only by its size, but also by the fact that the effects of such a collapse would not ripple very far through the economy. Even a major Enron-style debacle at a small company - in fact, even the bankruptcy of a good percentage of those companies - would do little to affect the nation's wealth. The cost of SOX 404 compliance disproportionately impacts small businesses. because there is a large fixed amount...... middle of paper ......2,sid182_gci1189162,00.html?asrc=SS_CLA_308970&psrc=CLT_182SOX spending is down, but CIOs still have work to do 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 in SOX 404 for Small 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