Close

Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.

×

Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

Correction to Disclosures Required by SOX Section 406 and 407

SEC | March 26, 2003

On March 26, the SEC made a technical correction to the rules implementing Sections 406 and 407 of the Sarbanes-Oxley Act of 2002 by requiring disclosures regarding audit committee financial experts and codes of ethics.

On January 23, 2003, the Commission adopted rules that require disclosure of whether a company has an audit committee financial expert on its audit committee.

After the rules were adopted, questions arose regarding whether the disclosures must be provided in registration statements, as it did not clearly state that such disclosure is required only in annual reports.

As a result, the SEC has clarified that the disclosure of whether a company has an audit committee financial expert serving on its audit committee is only required in annual reports.

A company may, at its discretion, include the audit committee financial expert disclosure in its proxy or information statement and...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.