House Committee Approves Small Firms’ Audit Exemption

According to Bloomberg, U.S. House lawmakers voted to exempt small businesses from investor-protection rules.

The House Financial Services Committee voted 37-32 on Nov. 4 to spare companies with market values of less than $75 million from audit requirements of the 2002 Sarbanes-Oxley Act. The permanent exemption was added to legislation that would boost funding for the SEC and impose stiffer rules on the brokerage industry. The bill was approved 41-28.

The Obama administration pushed for the amendment, arguing investor-protection rules should be aimed at large companies rather than small businesses that may have difficulty complying with more rigorous audit standards.