Internal Controls

Why was the effective date pushed to June 15, 2004? Did the SEC ostensibly cave to corporate pressure? The effective date for accelerated filers, other than foreign private issuers, was changed to years ending on or after June 15, 2004 and to years ending on or after April 15, 2005 for all other issuers, including […]

On May 27, 2003, the SEC voted to adopt rules concerning management’s report on “internal control over financial reporting” and certification of disclosures in Exchange Act periodic reports. Key components of the rule are listed below: Basic Concepts Section 404 of Sarbanes-Oxley mandated that the SEC adopt rules requiring companies to disclose in annual reports […]

ODon’t give me more reports on my control weaknesses — fix them!” That’s increasingly the attitude in some corporations, reacting to ever increasing pressure on internal controls, particularly from Section 302 and Section 404 of the Sarbanes-Oxley Act. When CEOs and CFOs certify their assessments of internal controls effectiveness, the last thing they want is […]

Sarbanes-Oxley is the buzz within all public companies today as they work towards complying with the new regulations. Even private companies are joining in as a recent survey noted that 58% of private companies are instituting changes to improve their accounting practices in response to the new act. Of particular note are the following sections: […]

The overhaul in corporate accountability sparked by the Sarbanes-Oxley Act of 2002 marks the most dramatic and far-reaching reform affecting financial reporting in almost 70 years. When it comes to complying with the new rules on certifications and the issuance of management’s report on internal controls, Section 404 can be seen as an opportunity to […]

For many companies, the mention of internal controls sets off a passionate discussion of the latest physical inventory or the recent establishment of an asset tracking system. While safeguarding the company’s assets is one element of internal controls, Section 404 of the Sarbanes-Oxley Act of 2002 has brought to the forefront a concept of internal […]

Senior executives have long sought ways to better control the enterprises they run and reduce risk. Effective IC promotes efficiency, reduces risk of asset loss, and helps ensure the reliability of financial statements and compliance with laws and regulations. IC enables management to effectively react to rapidly changing economic and competitive environments, and shifting customer […]

How do you get the undivided attention of a CFO? Sidle alongside and whisper the words “Sarbanes-Oxley” in his or her ear. No piece of legislation in recent memory has inspired consternation equal to that brought on by The Sarbanes-Oxley Act. This complex law and its associated regulations have executives, directors, and committee members scrambling […]

Even though standards or deadlines are not yet mandated, many companies are spending inordinate amounts of time — or should be — beefing up their internal controls. Much of this activity is at the prodding of the independent auditors, whose attestation fees are often estimated at a level at least as high as the current […]