Internal Controls

When engaged in an ambitious effort, be it climbing a mountain, building a house, or writing a novel, many people have a tendency to quicken their pace once the long-sought goal finally comes into view. The same holds true for Sarbanes-Oxley Section 404 compliance projects. Many months have gone into documentation, testing, and remediation, and […]

A specialty chemical company recently informed the Securities and Exchange Commission that it violated new rules prohibiting loans to executives. It also said a deficiency identified by its auditor caused the company’s disclosure controls and procedures not to be effective at a “reasonable assurance level.” Although the case involves a very small company, it provides […]

This profile is the latest in a series of weekly conversations with executives at U.S. public companies who are currently involved in establishing and developing compliance programs. An index of previous conversations is available here. Rumor has it you printed T-shirts for your Section 404 project team. True? We did. One of the fun parts […]

According to a recent study conducted by Financial Executives International, complying with Section 404 of The Sarbanes-Oxley Act will cost public companies over 60 percent more than previously anticipated. The study, which surveyed 224 public companies with average revenues of $2.5 billion, pegged the total cost of “year one” compliance at $3.14 million. That’s a […]

SECTION 404 The July Data View The Actual Internal Control Disclosures From July View Sample Disclosures Of Remediation Efforts From July According to a review of regulatory filings during the month of July, 36 companies disclosed material weaknesses or significant deficiencies in internal controls, or provided material updates on the status of their control-improvement processes. […]

This profile is the latest in a series of weekly conversations with executives at U.S. public companies who are currently involved in establishing and developing compliance programs. An index of previous conversations is available here is available here. So, have any pets yourself? Oh yes. I have two rat terriers; they’re in the terrier dog […]

At a recent teleconference hosted by financial print giant RR Donnelley, SEC Division of Corporation Finance Director Alan Beller and Public Company Accounting Oversight Board Member Daniel Goelzer fielded a variety of questions and recommended filers “listen to the music” being played in the FAQs. The session was produced by legal publisher Glasser LegalWorks, which […]

The U.K.-based Financial Reporting Council announced recently that it would review—and likely update—the 1999 Turnbull Guidance. The 14-page “Turnbull Report,” published in September 1999 by the Institute of Chartered Accountants in England and Wales, includes guidance for implementing sound internal controls for U.K. companies listed on the London Stock Exchange. Though the report is widely […]

As companies race toward the Nov. 15 deadline for the internal control provisions of Sarbanes-Oxley—ubiquitously known as “SOX 404”—the last thing on most compliance executives’ minds is next year’s compliance requirements. INGREDIENTS According to experts, there are three core elements to ongoing compliance—people, process, and technology. 1. People According to Stephen Wagner, chairman of the […]