The SEC (Securities and Exchange Commission) has approved guidance for public companies to assist with compliance under Section 404 of the Sarbanes-Oxley Act of 2002.  The guidance is of particular importance for smaller companies.  Generally, the guidance assists management to focus on the internal controls that are at risk of a material financial misstatement.

In addition, the SEC has decided not to extend the deadline of compliance for SB (Small Business) filers.  Therefore, management's assessment of internal controls must appear in the annual reports for fiscal years ending on or after December 15, 2007.

The full text of the guidance and rules will be available from the SEC, as soon as possible.