A specialty chemical company recently informed the Securities and Exchange Commission that it violated new rules prohibiting loans to executives. It also said a deficiency identified by its auditor caused the company’s disclosure controls and procedures not to be effective at a “reasonable assurance level.”
Although the case involves a very small company, it provides insight into Section 402 as well as Section 404 of Sarbanes-Oxley, the high-profile provision that officially goes into effect Nov. 15.
