Scaling the Costs of 404 Testing to Fit the Needs of Small Public Companies

In July of 2002, the Sarbanes-Oxley Act was passed by Congress, including section 404 which requires the auditors to test and opine on the company's internal controls. Since that time there has been much debate about whether the intended benefits of increased investor confidence and financial statement transparency trump the unexpectedly high compliance costs, especially for public companies with market-caps less than $75 million. Before these companies begin complying in the upcoming year, interest groups are calling for the requirements to be 'scaled' to better fit the needs of these companies. While auditors already are expected to scale their audit approach to each individual client, more must be done to significantly decrease the costs in order to reverse the trend of small companies foregoing listing on U.S. capital markets. Increased guidance from the PCAOB, SEC, and other related parties could help the small-cap companies and their auditors be aware of best practices. Also, exempting industries that already follow similar guidelines or are significantly injured by the compliance requirements could help. Lastly, the controversial proposal of rotational audits could be put in place if the affected parties cooperate to remove the undue burden on these small-cap companies. Without some form of significant action, the investors could soon lose the ability to buy small-cap companies in U.S. markets.

Preservice Teacher Preparation in Meeting the Needs of Gifted and Other Academically Diverse Students

The issue of how to respond to the diverse academic needs of students is one of the central challenges of teaching. This project studied how preservice teachers develop an awareness of the needs of academically diverse learners and how they intend to implement and/or modify instruction to meet those needs. Participants all came from one university. As part of the design of the study, the participants were surveyed to investigate (a) their attitudes and beliefs towards academically diverse learners; (b) the teaching practices they would utilize in response to academic diversity in their classrooms; and (c) the confidence they have in their abilities to identify and address these various needs in their classrooms. Several strategies including activities to enhance creativity, cooperative learning, individual instruction, problem-solving activities, and projects were considered noteworthy for the ratings by the preservice teachers as appropriate for all students. Small differences were found based on the preservice teachers' year of placement in the School of Education, indicating that as students progress through this program, they may learn more about different techniques and when and for whom they are appropriate; however, differences across groups were not statistically significant. Results also indicated that across the different years in the program, preservice teachers did not have very high or very low confidence in addressing these issues in their own classrooms. Each grouping fell around the middle level of confidence.