August 21, 2007
Michael Oxley Speaks about SOX on the Fifth Anniversary
Michael Oxley is precisely right. The Sarbanes-Oxley Act has been a good thing for US markets. And he is right about the impact on standards in other markets. Examples are Canada with its NI 52-109 which is about 80% the same as SOX 302/404 but excludes the external auditor attestation; other examples are Japan with its JSOX and India is also moving toward more transparency in reporting as well.
Sarbanes-Oxley has now reached the optimal point. Auditors now do not have to opine on a registrant's process for its internal control over financial reporting project. The auditors must opine on the adequacy of a company's internal control over financial reporting. As well, the Public Company Accounting Oversight Board (PCAOB) has revised its audit standard and it now is scaled back and emphasizes a risk based approach to audits.
All these changes have been in response to huge public outcry. But good for the SEC that they have not tried to neuter the legislation. Good work but hard work.
Here is an excerpt from Michael Oxley's podcast:
"In a podcast interview with Gartner Inc. analysts Bruce Bond and Vincent Oliva to mark the fifth anniversary of the introduction of the act, Mr Oxley said that although there is evidence that some European financial markets are becoming increasingly attractive, the US is still regarded as the safest and fairest of international markets with the highest standards.
Mr Oxley, currently vice chairman of the NASDAQ stock exchange, also said that since the introduction of SOX in the US, many countries, bothdeveloped and developing, have moved towards higher standards of cor-porate governance and listing requirements. The predicted 'race towards thebottom' that was widely predicted after the New York Stock Exchange and NASDAQ tightened their listing standards has failed to materialise. "
If your company has to comply with SOX 404 or NI 52-109, and wants to do it in a sensible and cost effective way, contact http://www.issuescentral.com/ for more information on Compliance Playbook® for companies based outside of Canada. For Canadian based companies, see http://www.compliancepartner.ca/ for more information on Compliance Partner™ from Thomson Carswell.
Sarbanes-Oxley has now reached the optimal point. Auditors now do not have to opine on a registrant's process for its internal control over financial reporting project. The auditors must opine on the adequacy of a company's internal control over financial reporting. As well, the Public Company Accounting Oversight Board (PCAOB) has revised its audit standard and it now is scaled back and emphasizes a risk based approach to audits.
All these changes have been in response to huge public outcry. But good for the SEC that they have not tried to neuter the legislation. Good work but hard work.
Here is an excerpt from Michael Oxley's podcast:
"In a podcast interview with Gartner Inc. analysts Bruce Bond and Vincent Oliva to mark the fifth anniversary of the introduction of the act, Mr Oxley said that although there is evidence that some European financial markets are becoming increasingly attractive, the US is still regarded as the safest and fairest of international markets with the highest standards.
Mr Oxley, currently vice chairman of the NASDAQ stock exchange, also said that since the introduction of SOX in the US, many countries, bothdeveloped and developing, have moved towards higher standards of cor-porate governance and listing requirements. The predicted 'race towards thebottom' that was widely predicted after the New York Stock Exchange and NASDAQ tightened their listing standards has failed to materialise. "
If your company has to comply with SOX 404 or NI 52-109, and wants to do it in a sensible and cost effective way, contact http://www.issuescentral.com/ for more information on Compliance Playbook® for companies based outside of Canada. For Canadian based companies, see http://www.compliancepartner.ca/ for more information on Compliance Partner™ from Thomson Carswell.
