A key committee of the Securities and Exchange Commission pondering ways to make compliance with the Sarbanes-Oxley Act more palatable planned to meet this week to discuss publishing a draft of its final recommendations. The SEC’s Committee on Smaller Public Companies was scheduled to meet Tuesday to wrap up its efforts and ready a draft […]
Internal Controls
Posted inInternal Controls
Will 404 Really Prevent Financial Reporting Fraud?
Last month we looked at the benefits and related costs of Sarbanes-Oxley, with a skeptical eye on whether section 404 really makes sense. While I believe the column to be thoughtful and insightful, at least one reader feels that I just don’t get it. He writes: “I agreed totally with your statement when you concluded […]
Posted inInternal Controls
COSO: Final Guidance For Small Cos. Likely By April
The long-awaited guidance providing small public companies tips on how to implement an effective internal control framework could be finished by April, according to Larry Rittenberg, chairman of the Committee of Sponsoring Organizations. The task force that issued COSO’s draft document in October is reviewing 30 comment letters and 176 feedback-form submissions to determine which […]
Posted inInternal Controls
Examining Section 404, With Two Years Of Hindsight
Nothing seems to generate more passionate reaction in the business world these days than the Sarbanes-Oxley Act. And nothing gets emotions churning quite like the now-famous internal control provisions of the Act, known ubiquitously as Section 404. There’s always a chance the rules will change. Not long ago, for example, Securities and Exchange Commission Chairman […]
Posted inInternal Controls
Sonus Networks COO On Firm’s 10 Material Weaknesses
In the latest of our weekly Q&As with governance and compliance executives, we talk to Bert Notini, chief operating officer at $170.7 million Sonus Networks. An index of previous conversations is available here. In last year’s annual report, your company listed 10 material weaknesses. How do you sort out which ones to remedy first? Well, […]
Posted inAccounting & Auditing
Citrin Cooperman Governance Leader Discusses Year Two
In the latest of our weekly Q&As with governance and compliance executives, we talk to Michael Rhodes, partner-in-charge of corporate governance at $41 million Citrin Cooperman. An index of previous conversations is available here. You were recently named partner-in-charge of corporate governance. Tell us about your role and responsibilities. Our practice provides a broad range […]
Posted inAccounting & Auditing
FASB Issues Positions On Loan Terms, Intangibles; More
The Financial Accounting Standards Board has issued staff positions and a proposed staff position that offer guidance on loan terms that may trigger a concentration of credit risk, investment contracts, and the amortization of intangible assets. In its staff position titled “Terms of Loan Products That May Give Rise to a Concentration of Credit Risk,” […]
Posted inInternal Controls
Remediation Center: 404 Exit Clause For Accelerated Filers
At the request of subscribers, Compliance Week has launched a Remediation Center, in which readers can submit questions—anonymously—to securities and accounting experts. Compliance Week’s editors will review all questions and then submit them—confidentially, of course—to specialists who can address the issues. The questions and responses will then be reprinted in a future edition of Compliance […]
Posted inInternal Controls
Remediation Center: Remediation Materiality Thresholds
At the request of subscribers, Compliance Week has launched a Remediation Center, in which readers can submit questions—anonymously—to securities and accounting experts. Compliance Week’s editors will review all questions and then submit them—confidentially, of course—to specialists who can address the issues. The questions and responses will then be reprinted in a future edition of Compliance […]
Posted inInternal Controls
SEC Advisory Committee Approves 404 Exemptions, More
A closely watched advisory panel to the Securities and Exchange Commission approved preliminary recommendations it will submit to the SEC in the spring, including one that would exempt most public companies from certain provisions of Sarbanes-Oxley. At a Dec.14 meeting, the SEC Advisory Committee on Smaller Public Companies voted to exempt microcap companies—as defined by […]
