Tuesday, November 16, 2004

Sarbanes-Oxley legislation passes latest deadline for compliance

Many businesses have less than 75 days to ensure their IT systems are compliant with US Sarbanes-Oxley legislation.

Any public company with more than $75m in market capitalisation that closes its 2004 fiscal year on or after 15 November must meet the needs of Section 404 of the 2002 US accounting regulation within 75 days of their year-end date.

Some 300 companies have already warned the US Securities and Exchange Commission (SEC) that they face non-compliance with the deadline for Section 404 due to weaknesses in their internal controls.

Section 404 mandates a company's auditor to identify 'any material internal control weakness' or 'significant deficiency', in verifying that management has sufficient operational command to produce reliable and compliant financial reports.

'Now we have all these other obligations including internal reporting, which is causing companies all this grief, because internal control reporting for US companies starts now,' said Rick Mitchell, partner at law firm, McDermott, Will & Emery.

Sarbanes-Oxley legislation passes latest deadline for compliance

Send to a friend:

0 Comments:

Post a Comment

<< Home

Previous articles

SOX and User Provisioning

Sarbanes-Oxley Compliance: SunTrust Banks May Not ...

Sarbanes Oxley internal control rule hits today

Rules trigger IT overhaul

TNS Announces Turnkey Sarbanes-Oxley 409 Solution ...

SEC urged to enforce Sarbanes Oxley whistle-blower...

Sarbox 404 Goes into Effect Tomorrow

Users brace for SOX deadline

US starts to count cost of corporate clean up

Firms struggle with Sarbanes-Oxley