The biggest driver is Section 404 of the Sarbanes-Oxley Act, which was passed in 2002 in response to the accounting and finance scandals that embroiled Enron Corp., WorldCom Inc. and others.

The reports are mandated under section 404 of the Sarbanes-Oxley Act, requiring companies to annually explain how they've ensured the health and well-being of their internal financial procedures.

It the meantime, it calls on the SEC to provide exemptive relief from the internal control reporting requirements of the Sarbanes-Oxley Act (SOX 404) to micro-cap companies with less than US$125 ...