The following has been prepared by Spherion^® for information purposes only and does not constitute legal advice.

In an effort to improve accuracy and reliability of financial reporting, the U.S. Congress passed the Sarbanes-Oxley Act in July 2002. This Act focuses on regulating accounting and auditing practices of publicly traded companies. Several of these provisions are now, or soon will be, in effect and require immediate attention. Some of most significant regulations in the Act focus on:

• Corporate governance standards
• Public company disclosure
• Auditor independence
• Enhanced financial disclosure requirements

Auditor Highlights
Below are two sections from the Sarbanes-Oxley Act that focus on the need for internal auditors and financial advisors. Spherion can provide skilled professionals to assist companies in complying with recent regulations within the appropriate timelines.

Section 302 - Requires that public companies provide quarterly and annual certification of their internal control structure and procedures, which include verifying every report only contains true statements and does not omit crucial material or present misleading information. A signing officer of the company who is responsible for establishing and maintaining internal controls must review these reports and disclose their conclusions about the effectiveness of these controls, based upon their evaluation that was conducted 90 days prior.

Section 404 - Requires public companies to file an internal control report along with their annual report stating:               

• Sufficient internal control structure and procedures for financial reporting have been established and maintained by management
• Management's assessment of the effectiveness of internal control structure & procedures for financial reporting
• Auditor attests that management's assessment of internal controls & procedures for financial reporting is accurate 

Read the SEC’s announcements to date as they relate to Sarbanes-Oxley Act
 
Learn how Spherion can help your business prepare for these new regulations

Have an immediate need? Contact us today.