As expected, the Securities and Exchange Commission has put out an announcement that smaller companies will not be exempted from the Section 404 rule designed to strengthen financial controls.

What it will do instead is provide companies with better guidance on how to implement the rule. According to the SEC, that and some other small measures including a brief postponement for some companies, should be enough.

"The expected actions will also include SEC inspections of PCAOB efforts to improve Section 404 oversight and a brief further postponement of the Section 404 requirements for the smallest company filers, although ultimately all public companies will be required to comply with the internal control reporting requirements of Section 404."

For more details, check the news reports from Reuters and CFO.com.