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More Than 7% of U.S. Public Companies Fail Financial Certification
From: "Dave Farber" <dave () farber net>
Date: Mon, 18 Apr 2005 12:43:16 -0500
------- Original message ------- From: Robert Raisch <raisch () raischfinancial com> Sent: 18/4/'05, 12:17 Dave, According to research we recently conducted with Compliance Week - www.complianceweek.com, more than 7% of public companies in the Russell 3000 have failed to be certified under Section 404 of the Sarbanes-Oxley Act of 2002 since February. Sarbanes-Oxley (SOX) was enacted in the wake of such spectacular financial failures like Enron and Worldcom, to give investors timely information regarding anything which might adversely affect their investment. Section 404 requires public companies to have their auditors certify that the company's internal controls over financial reporting meet minimum requirements established by the Securities & Exchange Commission and general accounting standards and practices. Such controls can be as simple as requiring any corporate check to be signed by two authorized employees or as complicated as minutely tracking all income and expenditures throughout the organization. Of the twenty-seven companies in "Computer Hardware & Software" reporting in the first quarter of 2005, four failed SOX 404 compliance. Each Tuesday, we publish an up-to-the-minute analysis of SOX 404 compliance in the Compliance Week / Raisch Financial Internal Controls Report Scorecard Full details can be found at http://www.complianceweek.com IPer's wishing to view the report can drop me a line at raisch () raischfinancial com and I'd be happy to forward them a copy of the most recent report. See also: New York Times: "Here it Comes: The Sarbanes-Oxley Backlash" http://www.nytimes.com/2005/04/17/business/yourmoney/17sox.html Reuters: "Lifting the Lid: Audit Failures Hit Some More Than Others" http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=8134684§ion=news Business Week: "Sarbanes-Oxley Is Not Bad" http://www.businessweek.com/magazine/content/05_17/b3930023_mz001.htm /rr Robert Raisch, ceo Raisch Financial www.raischfinancial.com ------------------------------------- You are subscribed as lists-ip () insecure org To manage your subscription, go to http://v2.listbox.com/member/?listname=ip Archives at: http://www.interesting-people.org/archives/interesting-people/
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- More Than 7% of U.S. Public Companies Fail Financial Certification Dave Farber (Apr 18)