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SURE, WE FIRED INTO THE CROWD, BUT THINK OF ALL THE JOBS CREATED IN THE BANDAGE INDUSTRY

January 04, 2006

Jack Ciesielski of the Analyst's Accounting Observer Weblog finds the happy side of pricing smaller firms out of the public capital markets via Sarbanes-Oxley Section 404:

While we’re all still wondering what the new year will hold in store, let me toss out one expectation: we aren’t going to hear as much yelping about Section 404 costs as in 2005. At least from the big firms. Smaller firms will still yelp loudly and frequently.

This article from CFO.com cites one good reason: escalating salaries for finance personnel, in companies large and small.

It’s a necessary fact of life: if a firm wants to be in the public markets, and tap the vast capital available in those markets, then it should behave accordingly and accept the burden of having to deliver high-quality financial reporting to those who supply the capital. Paying up for the right personnel - and the right amount of personnel - is part of that burden.

Accounting students: are you paying attention? Your ticket awaits, for at least the next few years.

While I question the link between Section 404 and "high-quality financial reporting" -- I think it's more like "appease the lawyers financial reporting" -- at least my auditing brethren get a gravy train to ride.

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