SOX
Sarbanes – Oxley “SOX”
U.S. Public Company Accounting Reform & Investor Protection Act of 2002
Key Provisions Affecting CIO’s
Section 302: Certification of Financial Reports*
Requirement | Solution |
CEO, CFO and an attesting public accounting firm must certify the accuracy of financial statements and disclosures in the periodic report. | Because IT systems generate periodic reports and control email, the primary tool for communicating information internally, CIO’s must ensure host systems are secure and reliable |
CEO, CFO and an attesting public accounting firm must certify that the statements fairly present in all material aspects the operation and financial condition of the issuer. | Certified CARE assists with the following:
Reliability:
Security:
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Material information used to generate periodic reports must be retained and made available to the public | Automatic archival of all reports for up to one year |
*Prescribes criminal penalties
Section 404: Certification of Internal Controls*
Requirement | Solution |
Requires a statement of management’s responsibility for establishing and maintaining adequate internal control over financial reporting for the company, attested to by the company’s auditor.
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Critical systems may include but are not limited to:
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Reporting of material process changes** every quarter
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Certified CARE helps CIO’s address the assessment, identification and documentation of internal controls:
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*Required by June 15, 2004 for large companies and April 15, 2005 for other filers
**Sarbanes-Oxley limits the services that an attesting audit firm can offer to assure there is no conflict of interest. Thus, the auditor that signs an organization’s financial statement can’t implement
Section 409: Material Event Reporting*
Requirement | Solution |
Public companies must disclose information on material changes in their financial condition or operations on a rapid and current basis. | IT systems as they support business operations and financial management, play a significant role in the detection and management of material events
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Full information: http://www.aicpa.org/info/sarbanes_oxley_summary.htm
Not only do we believe in Certified CARE, but we will offer you a free trail of Certified CARE to show that it provides a good investment in your environment. Get the process started today, call Certified NETS at (314) 292-6260.