Monday, September 20, 2004

Hardly Ready for Sarbanes-Oxley

Inside the sleek office towers of Corporate America, far from the façade that most businesses present to outsiders, publicly traded companies are racing against the clock. Their task: To comply with some of the most far-reaching federal regulatory changes they've ever faced -- and to do so before yearend. Many execs find their stomachs churning.

Section 404 of the Sarbanes-Oxley Act, which passed in July, 2002, in the wake of major corporate scandals, requires that management of any large public company that ends its fiscal year on Nov. 15, 2004, or later, assess its internal controls over financial reporting. These are the nitty gritty of procedures that govern actions such as issuing checks and recording sales. Then, companies must hire independent auditors to "attest" to the accuracy of management's report. Both management's and auditors' assessment must make it into the annual report for 2004.

Hardly Ready for Sarbanes-Oxley

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