Moore Stephens Frost Joins SOX Alliance

Little Rock public accounting firm Moore Stephens Frost PLC has joined a 14-firm alliance created as an outsource resource for public companies to use while complying with the Section 404 of the Sarbanes-Oxley Act of 2002 (SOX).

Section 404 of SOX requires management of public companies to include in their annual report an internal control for financial reporting, to assess the internal control and for the public accounting firm that issues the report to attest to the assessment made by company management.

Of the 20 largest public companies in Arkansas, ten are in the six-county Northwest Arkansas region.

Greg Barnes, a partner with MSF, said his firm has had two notable 404 compliance contracts so far but not as a part of the alliance. He said one was with the Arkansas division of a public company, which is finished, and the other is ongoing with an Arkansas firm.

Barnes said the alliance had developed database software that facilitates documentation for 404 compliance. The knowledge shared between members of the alliance will provide turnkey service, he said.

Companies with a market capitalization of more than $75 million are required to comply by Dec. 31. Companies with a market capitalization of less than $75 million are required to comply by Dec. 31, 2005.