U.S. House rejects small firm Sarbanes-Oxley audits

WASHINGTON Dec 11 (Reuters) - The U.S. House of Representatives rejected on Friday a measure that would have required small corporations with market capitalization of less than $75 million to get external reviews of their internal financial controls under a post-Enron regulation.

The measure, an amendment to a broader financial reform bill, would not have taken immediate effect. It concerned Section 404 audits required under 2002's Sarbanes-Oxley laws.

By rejecting the measure, lawmakers backed an earlier amendment to the broader bill calling for permanently exempting small firms from Section 404 compliance. Approval of the broader bill was expected later on Friday. The Senate was not expected to vote on financial reforms until 2010. (Reporting by Kevin Drawbaugh, Editing by Chizu Nomiyama)