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.

A Study of the Molecular Basis of Microvariants at the FGA and D21S11 Loci Used in Forensic DNA Testing

Microvariant alleles, defined as alleles that contain an incomplete repeat unit, often complicate the process of DNA analysis. Understanding the molecular basis of microvariants would help to catalogue results and improve upon the analytical process involved in DNA testing. The first step is to determine the sequence/cause of a microvariant. This was done by sequencing samples that were determined to have a microvariant at the FGA or D21S11 loci. The results indicate that a .2 microvariant at the D21S11 locus is caused by a -TA- dinucleotide partial repeat before the last full TCTA repeat. The .2 microvariant at the FGA locus is caused by a -TT- dinucleotide partial repeat after the fifth full repeat and before the variable CTTT repeat motif. There are several possibilities for the reason the .2 microvariants are all the same at a locus, each of which carry implications on the forensic community. The first possibility is that the microvariants are identical by descent, which means that the microvariant is an old allele that has been passed down through the generations. The second possibility is that the microvariants are identical by state, which would mean that there is a mechanism selecting for these microvariants. Future research studying the flanking regions of these microvariants is proposed to determine which of these possibilities is the actual cause and to learn more about the molecular basis of microvariants.