Small firms struggling under Sarbanes-Oxley
Small US accounting firms are struggling to cope with the introduction of the Sarbanes-Oxley Act with many looking to move out of auditing public companies.
Under the new rules, auditors must register with the Public Company Accountancy Oversight Board, which can inspect and discipline such firms.
However many small firms are concerned that the stringent conditions that are imposed on them could ruin their business if something goes wrong, according to the Washington Post. Many are now looking to reduce their workload with listed companies and focus instead on private clients.
So far only 88 firms have registered with the PCAOB.