CEO

CFO

CDO
CRO

CICO
Public companies with more than $10 million of assets whose shares are held
by more than 500 investors are required to file auditor’s annual reports (Form
10-K or 10-KSB) and quarterly reviewed reports (Form 10-Q or 10-QSB) with
the SEC.

The annual report of public companies normally contains the following

financial information:

1. Audited financial statements, including their notes

2. MD&A of financial condition and results of operations
3. Management certifications of financial statements and internal
controls
4. Management’s assessment of the effectiveness of ICFR
5. ACR
6. Independent auditor’s report on financial statements
7. Independent auditor’s report on the effectiveness of ICFR
8. Five-year summary of selected financial data
9. Summary of selected quarterly financial data for the past two years
10. Quarterly market data for the past two years, including high and low
stock prices for common stock, dividends paid, and price earnings ratio.

Section 302
Small Reporting Companies

The SEC proposed its principles-based rules for smaller

companies for so-called nonaccelerated filers — companies
below the $75 million market capitalization.
 the actual cost of auditing ICFR is in the
range of $1.5 million to $10 million, with an
Section 404 Costs average of $2.6 million for Fortune 1000
companies
The expected benefits of compliance with
Section 404 are (1) more investor
Benefits of Section 404 Compliance confidence in financial reports, (2) more
accurate and reliable financial reports, (3)
more financial fraud prevention and
detection, (4) more effective ICFR that
improves operating, investing, and
financing activities, and (5) lower cost of
capital.

Sustainable Section 404 Compliance companies should shift away from a project
approach to a continuous process of
integrating sustainable compliance into
their corporate governance structure.