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Breaking News
SEC approves new 404 guidance but
does not extend the deadline for non-accelerated filers.
May 23, 2007 “The Securities and Exchange Commission today
unanimously approved interpretive guidance to help public
companies strengthen their internal control over financial
reporting while reducing unnecessary costs, particularly at
smaller companies. The new guidance will enhance compliance
under Section 404 of the Sarbanes-Oxley Act of 2002 by focusing
company management on the internal controls that best protect
against the risk of a material financial misstatement.”
SEC
Press Release 5/23/05
SEC
Proposed Rules
PCAOB adopts
new standards for Section 404 that are more aligned with SEC's
proposed guidance.
"On May 24, 2007, the Board adopted Auditing Standard No. 5, An
Audit of Internal Control That is Integrated with An Audit of
Financial Statements. If approved by the Securities and Exchange
Commission, the new standard will supersede Auditing Standard
No. 2, which was adopted by the Board in March 2004 and approved
by the SEC in June 2004. The new standard will apply to audits
of all companies required by SEC rules to obtain an audit of
internal control. " PCAOB
Website
10 Tips for Managing 404 Compliance
Over a year after the
SEC implemented Section 404 of the Sarbanes-Oxley Act, many
companies are still struggling to determine how to implement a
compliance program. In addition, Section 404 compliance may
be required of a wider audience of companies -- including private
companies. Diane Wolff, CIO Update, December 21, 2005.
The Message in Ebbers' Senternce
The ex-Worldcom
CEO's 25-year stretch puts corporate crooks on notice. And
it's sure to have prosecutors looking further up the food chain.
Steven Rosenbush, BusinessWeek,
July 14, 2005.
Feeling the Pain: Are the Benefits of Sarbanes-Oxley Worth the
Cost?
Now that
over 2,000 public companies have filed their 404 assertions, the
news from the front lines indicates that more reforms are still
needed.
Tim
Reason, CFO Magazine, May 1, 2005.
What Does Your CEO Really Know?
How much
do chief executives know about company finances? Has
Sarbanes-Oxley helped to increase a CEO's understanding of their
company's financials? Not necessarily, according to a recent
CFO Magazine survey. Kris Frieswick, CFO Magazine,
May 1, 2005.
Sarbanes-Oxley Section 404 Internal Controls
Year One
On May
16, 2005, the PCOAB released guidance that should provide relief
to many public companies. Diane Wolff, The Blue Sage
Group,
May 27, 2005.
Advisory Committee on Smaller Companies
The
Securities and Exchange Commission has established the SEC
Advisory Committee on Smaller Public Companies to assess the
current regulatory system for smaller companies under the
securities laws, including the impact of the Sarbanes-Oxley Act of
2002.
SEC
Web Site.
The Real Cost of Sarbanes-Oxley Compliance
"Sticker Shock": When Congress passed the
Sarbanes-Oxley Act of 2002, it didn't worry about how much it
would cost companies. Today, CFOs are totting up the compliance
bill -- and they don't like what they see.
Corporate
Scandals
Corporate scandals
have spread to mutual fund firms like Putnam, where the CEO has
resigned in the midst of investigations. Other inquiries are
likely to follow. Read the latest on
these scandals by clicking on the links below:
Kozlowski Guilty
of Stealing, Faces 25 Years in Prison
A New York state jury
convicted ex-Tyco chief Dennis Kozlowski and former finance chief
Mark Swartz of looting the conglomerate of hundreds of millions of
dollars.
Andrew Dunn,
Bloomberg.com,
June 17, 2005.
HealthSouth Agrees to Pay $100M Fine in Civil Fraud Case
HealthSouth, the rehabilitation hospital
chain that overstated its earnings by $2.7 billion from 1996
through 2003, agreed to pay a fine of $100 million to settle civil
fraud charges with the SEC. Greg Farrell, USAToday, June 8,
2005
Bernie Ebbers Guilty
Bernie Ebbers, the former chief executive
of Worldcom and perhaps the most powerful businessman ever to face
a criminal trial, was found guilty of securities fraud,
conspiracy, and filing false documents with regulators.
Dan Ackman, Forbes.com,
March 15, 2005.
AIG Names Reinsurance Chief
In the wake of a
financial fraud probe, American Insurance Group, Inc. (AIG) named
Charles Dangelo senior reinsurance officer. Dangelo will be
responsible for all outward reinsurance relationships involving
AIG companies. TSC Staff, TheStreet.com, July 6, 2005.
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