Small Companies and SOX

According to Jaclyne Badal and Phred Dvorak,

... auditors say an increasing number of closely held companies are complying with parts of the corporate-reform law -- even though they don't have to. Some of these private-sector companies have investors who hope the company will one day go public, or will be acquired.

Ryan LaFond, an assistant professor at MIT Sloan School of Management in Cambridge, Mass., says there may be a financial incentive for private companies to comply with the law -- internal controls can help them raise money at lower cost.

Snippets from the WSJ Startup Journal August 17, 2006.

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