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Sarbanes-Oxley socks it to ’em. Smaller ventures find they’re having to pay millions to comply.

Private firms, many small or family-owned, stung by accounting rules made for public giants. The 2002 act followed the Enron and WorldCom scandals, but smaller ventures find they’re having to pay millions to comply.

Privately held Colorado companies of all sizes are feeling the unintended effects of a federal law targeted at publicly traded firms.

The Sarbanes-Oxley Act of 2002, passed in the aftermath of scandals at Enron Corp. and WorldCom Inc., was intended to upgrade accounting procedures and board oversight at exchange- traded companies in which individual investors hold stakes.

But the law’s impact has trickled down to private companies, many of them family-owned, forcing them to spend more time and money on audits and, in some cases, to add outside directors to their corporate boards.

By Andy Vuong
Denver Post Staff Writer

Full Story: http://www.denverpost.com/business/ci_4177120

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