August 07, 2006
SOX 404 and Foreign Filers - To Delay, or not To Delay. That is the Question.
Rumor has it that the SEC may wish to delay the required first year filing of SOX 404 (Management's Report and Assessment on Internal Control over Financial Reporting) reports for non-U.S. based SEC filers. Click here to read more.
It appears that Chairman COX and the SEC may be willing to consider some additional deadline extensions for smaller (non-accelerated) U.S. filers, as well as foreign filers, with respect to SOX 404 activity. Foreign filers were set to file their reports for all fiscal year-ends on/after July 31, 2006, whereas U.S. based non-accelerated filers were looking at revised filing deadlines for fiscal years beginning on/after December 15, 2006 (i.e. effectively Dec 31, 2007 years ends as for most filers).
So what is happening?
The SEC and PCAOB are looking at a number of initiatives at present including the PCAOB's revision of Audit Standard 2 (External Auditor's Standard with respect to Internal Control audit), as well as the SEC's recent initiative to solicit feedback on providing a "management version" of AS2.
Oh brother, how much more time do foreign filers and smaller filers need to get on with this! Haven't they had the benefit of watching the activities of the last 3 years with respect to larger filers? I guess that if a smaller filer and a foreign filer has already been providing certifications for SOX 302 (CEO/CFO Certifications) that cover elements of internal controls, then what is the real problem? Think about it. If you have signed a 302 certificate you would have done most of the work already, right? How could a CEO/CFO sign 302 without having done their own assessment over internal controls over financial reporting? I guess I don't get it.
If your company is a non-accelerated filer or a foreign filer needing to comply with SOX 404, you can learn more about a cost-effective and streamlined approach to achieving SOX 404 compliance, then go to www.issuescentral.com to learn about the Compliance Playbook(TM).
If you a Canadian-based filer needing to comply with SOX 404 or MI 52-109, please visit the website of our exclusive Canadian distributor, Thomson-Carswell, at www.compliancepartner.ca and learn more about Compliance Partner(TM).
It appears that Chairman COX and the SEC may be willing to consider some additional deadline extensions for smaller (non-accelerated) U.S. filers, as well as foreign filers, with respect to SOX 404 activity. Foreign filers were set to file their reports for all fiscal year-ends on/after July 31, 2006, whereas U.S. based non-accelerated filers were looking at revised filing deadlines for fiscal years beginning on/after December 15, 2006 (i.e. effectively Dec 31, 2007 years ends as for most filers).
So what is happening?
The SEC and PCAOB are looking at a number of initiatives at present including the PCAOB's revision of Audit Standard 2 (External Auditor's Standard with respect to Internal Control audit), as well as the SEC's recent initiative to solicit feedback on providing a "management version" of AS2.
Oh brother, how much more time do foreign filers and smaller filers need to get on with this! Haven't they had the benefit of watching the activities of the last 3 years with respect to larger filers? I guess that if a smaller filer and a foreign filer has already been providing certifications for SOX 302 (CEO/CFO Certifications) that cover elements of internal controls, then what is the real problem? Think about it. If you have signed a 302 certificate you would have done most of the work already, right? How could a CEO/CFO sign 302 without having done their own assessment over internal controls over financial reporting? I guess I don't get it.
If your company is a non-accelerated filer or a foreign filer needing to comply with SOX 404, you can learn more about a cost-effective and streamlined approach to achieving SOX 404 compliance, then go to www.issuescentral.com to learn about the Compliance Playbook(TM).
If you a Canadian-based filer needing to comply with SOX 404 or MI 52-109, please visit the website of our exclusive Canadian distributor, Thomson-Carswell, at www.compliancepartner.ca and learn more about Compliance Partner(TM).
