LAW PUNDIT Saturday, November 13, 2004 11/13/2004 06:45:00 PM [Home]
Sarbanes-Oxley (SOX) Deadline on Monday
Sarbanes-Oxley (SOX) Deadline on Monday
Alan Meckler, CEO of Jupitermedia, has a blog posting entitled Sarbanes Oxley Is Kafka's Dream complaining about the company costs caused by SOX, the Public Company Accounting Reform and Investor Protection Act (the "Sarbanes-Oxley Act of 2002" summarized inter alia at the AICPA and SEC FAQS), which was passed in response to corporate scandals such as Enron and MCI.
Via Real Corporate Lawyer we are directed to two news articles at the Business Week Online and the New York Times indicating that many public companies are nowhere near meeting SOX deadlines. As noted in the November 12, 2004 InternetNews.com article by Sean Micheal Kerner:
"Monday [November 15, 2004] is the day that Section 404 of Sarbanes-Oxley, "Management Assessment of Internal Controls," comes into effect for U.S.-based companies with market capitalization greater than $75 million....
Section 404 demands that companies put in place an adequate internal control structure and procedures for financial reporting, and holds corporate management accountable for inadequate controls. To ensure compliance with Section 404, enterprises must have data retention and retrieval processes in place, as well as solid documentation of all financial records."
As that article indicates, SOX also has the advantage of bringing better business practices to regulated companies:
"In the view of vendors, SOX has actually served to bring to the fore priorities that should have been at the forefront to begin with.
'Things like cleaning up your files, consolidating, backup and protection was kind of on the back burner and was not a high priority from the business side,' said HDS's Hu. 'This now gives IT people the opportunity to implement those types of procedures. All this really adds up to better IT practices.'
'This will actually help end users in the near term by putting in place some critical infrastructure that will make managing and accessing electronic records in a secure way much easier and more effective,' said EMC's Lair. 'Properly leveraging a corporation's information assets is definitely a 'win' for end users.'"
Permalink : Andis Kaulins : 11/13/2004 06:45:00 PM
Sarbanes-Oxley (SOX) Deadline on Monday
Sarbanes-Oxley (SOX) Deadline on Monday
Alan Meckler, CEO of Jupitermedia, has a blog posting entitled Sarbanes Oxley Is Kafka's Dream complaining about the company costs caused by SOX, the Public Company Accounting Reform and Investor Protection Act (the "Sarbanes-Oxley Act of 2002" summarized inter alia at the AICPA and SEC FAQS), which was passed in response to corporate scandals such as Enron and MCI.
Via Real Corporate Lawyer we are directed to two news articles at the Business Week Online and the New York Times indicating that many public companies are nowhere near meeting SOX deadlines. As noted in the November 12, 2004 InternetNews.com article by Sean Micheal Kerner:
"Monday [November 15, 2004] is the day that Section 404 of Sarbanes-Oxley, "Management Assessment of Internal Controls," comes into effect for U.S.-based companies with market capitalization greater than $75 million....
Section 404 demands that companies put in place an adequate internal control structure and procedures for financial reporting, and holds corporate management accountable for inadequate controls. To ensure compliance with Section 404, enterprises must have data retention and retrieval processes in place, as well as solid documentation of all financial records."
As that article indicates, SOX also has the advantage of bringing better business practices to regulated companies:
"In the view of vendors, SOX has actually served to bring to the fore priorities that should have been at the forefront to begin with.
'Things like cleaning up your files, consolidating, backup and protection was kind of on the back burner and was not a high priority from the business side,' said HDS's Hu. 'This now gives IT people the opportunity to implement those types of procedures. All this really adds up to better IT practices.'
'This will actually help end users in the near term by putting in place some critical infrastructure that will make managing and accessing electronic records in a secure way much easier and more effective,' said EMC's Lair. 'Properly leveraging a corporation's information assets is definitely a 'win' for end users.'"
Permalink : Andis Kaulins : 11/13/2004 06:45:00 PM
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