Sarbanes-Oxley is a law passed in 2002 in the wake of US corporate scandals. It imposes a set of requirements on US companies, mostly applicable to registered and listed US companies, including prohibitions on insider loans, more stringent independent director and independent directors on key committees (exec. comp, for instance), more stringent independent auditor requirements (and lead partner independent auditor rotation) and the implementation of internal controls and procedures as well as related certifications of the efficacy of those internal controls and procedures.
The implementation of internal controls and procedures (the so called 404) and the accompanying external certification required in the public company’s annual report (10-K) has resulted in a great deal of expense and trouble for many US companies and the implementation of 404 was delayed for over a year but is now coming into full effect.
November 27th, 2009 at 2:28 am
Sarbanes-Oxley is a law passed in 2002 in the wake of US corporate scandals. It imposes a set of requirements on US companies, mostly applicable to registered and listed US companies, including prohibitions on insider loans, more stringent independent director and independent directors on key committees (exec. comp, for instance), more stringent independent auditor requirements (and lead partner independent auditor rotation) and the implementation of internal controls and procedures as well as related certifications of the efficacy of those internal controls and procedures.
The implementation of internal controls and procedures (the so called 404) and the accompanying external certification required in the public company’s annual report (10-K) has resulted in a great deal of expense and trouble for many US companies and the implementation of 404 was delayed for over a year but is now coming into full effect.
References :
http://www.sec.gov
November 27th, 2009 at 3:07 am
A bag of worms, don’t open it. S-O compliance is the protection of financial data and auditing of the data so enron won’t happen again. It makes companies do crazy things that it feels are compliance because the law is vague. Don’t go there.
References :