wtf is Sarbanes-Oxley compliance?

[Fluff]

:S
Is it one of those American ideas?

[GNEP]

It's an absolute f***ker. If you really really want the details then I can post at great length... Or have you more specific concerns?

[Fluff]

It's just this rather weighty document entitled "Corporate Security Policy and Procedures" appeared on my desk. And i'm trying to work my way through it. And I had never heard of that act.

Seems like alot of hassle for my branch office. 11 pc's and a simple file server. Looks like i will have a sharp leaning curve ahead.

[GNEP]

OK, briefly copying-and-pasting with some edits from the most concise internal guidelines I could find here:

Overview:

• Enterprise priority - not ‘nice to have’
• Failure means major reputation damage and more business distraction
• One material weakness by any business => failure for the Group
• Business leaders accountable for compliance
• Resource intensive – must have priority over discretionary activity
• SOX404 is here to stay – controls must stay SOX compliant year after year

What is it?

• Sarbanes-Oxley Act (SOX) passed in 2002, following Enron & Worldcom failures, intended to protect investors by improving reliability of corporate disclosures.
• New requirements for companies listed in USA
• S.404 deals with Internal Control over Financial Reporting

Would does it mean for your company?

• Principal executive & financial officers to provide a written assessment on effectiveness of internal control over financial reporting as of 31/12/2005, and annually thereafter.
• External auditors to provide independent opinion

What will you have to do?

• Evaluate effectiveness of control over financial reporting
• Support evaluation with evidence, including DOCUMENTATION
• Ensure effectiveness of design and operation through TESTING.
• Applies to whole system of control - including “tone from the top”

How are we doing it at my company?

• A central, directive Programme team – incorporating implementation managers in each business
• A single Group-wide methodology and approach, consistently implemented by the businesses.
• The Programme is Finance led but Business driven.

If that comes across as gobbledegook, I can probably translate...