Lord & Benoit Post-Mortem of Small High-Tech Public Company Accentuates Need for Sarbanes-Oxley Compliance
SBCO | Quote | Chart | News | PowerRating -- Lord & Benoit, a Sarbanes-Oxley (SOX) research and consulting firm, just
released The Tipping Point: Collision of Relaxed
Regulation, Small Business and the Economy, a White
Paper snapshot of the current economic, ethical and political
environment for small business SOX compliance in the new Obama
Administration. The Tipping Point provides a sobering post-mortem
case study of a small, high technology public company that, according to
a well-informed financial insider, "could have been saved if it had been
complying with Section 404." The company, which received millions of
dollars in investor capital during years of SOX deadline extensions,
filed for bankruptcy and left a painful trail of financial destruction
among investors, employees and suppliers.
"As sad as this case study is," says Robert Benoit, President and
Director of SOX Research, "this is not an isolated case. Financial fraud
tends to increase when the economy is struggling, and while politicians
and the media focus on the ills of big business, smaller public
companies are garnering little if any attention and scrutiny." The
Tipping Point walks readers through an easy-to-follow,
concise post-mortem of the business failure: from the enthusiastic
start-up with the charismatic and visionary executive, cutting-edge
technology, glowing publicity, euphoria of financing, rapid expansion of
staff and facilities to the warning signs, unwise choices, limitations
of auditors, imbalance of power, lack of ethics and caring,
misallocation of resources, bankruptcy and downfall of what could have
been a successful high-tech, global company.
Based on published comments from President Barack Obama, Vice President
Joseph Biden, PCAOB Chair Mark Olson, and SEC Chair Mary Shapiro, the
mood appears to be changing from years of deadline delays to more robust
insistence upon SOX compliance by smaller public companies in 2009.
For a free online copy of "The Tipping Point," please visit www.Section404.org.
Bob Benoit is President and Director of SOX Research at Lord &
Benoit, LLC, one of the most influential SOX Research and Compliance
firms for smaller public companies. In addition to his position
with Lord & Benoit, Bob serves on the COSO Monitoring Project Taskforce.
He has also served on the AICPA Peer Review Acceptance Board in MA for
10 years, has taught Complying with Sarbanes-Oxley Section 404
throughout the country through the State CPA Societies and is the author
of the Lord & Benoit Reports, which have been referenced by the SEC,
PCAOB, COSO, AICPA, CHH, RIA, BNA, Wall Street Journal, all of the "Big
4" firms and nearly 200 legal, educational and trade journals around the
world. Bob is the first evaluator to use the COSO Guidance for
Smaller Public Companies, the inventor of Virtual SOX taught on the
AICPA Technology website and research contributor to the SEC
Subcommittee, SEC Concept Releases and SEC/PCAOB Internal Control
Roundtables.
SOURCE: Lord & Benoit
LORD & BENOIT
Robert Benoit, 800-404-7794 x 204
President & Director of SOX Research
BobB@LordandBenoit.com
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