Friday, May 19, 2006

Sarbanes-Oxley Ups the Stakes on Credit Accuracy

Corporate officers certifying the accuracy of financial data to comply with Sarbanes-Oxley increasingly require subcertifications from employees providing the underlying information. Credit departments nationwide are feeling the effects, according to Atradius Trade Credit Insurance.

"Subcertifications put added pressure on credit managers to be certain the information being certified is as accurate as possible," says Atradius vice president Scott Pales. Pales' firm is the U.S. arm of Atradius Group, one of the world's leading trade credit insurers.

According to Pales, "Today, an independent audit board could interpret understated credit loss projections as an inflation of projected earnings. Credit managers at public companies across the U.S. are beginning to recognize business as usual just isn't good enough any more. As they look for ways to best support the credit-related information that now needs to be subcertified, they are finding trade credit insurance provides an effective way to document the validity of their receivables base.

Sarbanes-Oxley Ups the Stakes on Credit Accuracy

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