How Nov. 15, 2004 Deadline for Sarbanes Oxley 404 Compliance Affects You

>fully editable using MS Word. And it is also fully
How Nov. 15, 2004 Deadline for Sarbanes Oxley 404endorsed by The National Association of Corporate
Compliance Affects YouDirectors (NACD) as a tool to maintain a culture of
Public companies have 90 days from the end of theirintegrity.
fiscal year to comply. For those with marketInternal Controls
capitalization of $75 million or more, this clock starts onYour internal control report must also contain an
Nov. 15, 2004; while all others with less than $75 millionassessment of the effectiveness of your internal
market capitalization begin July 15, 2005.controls and procedures for financial reporting. In
Fast Relief for Sarbanes Oxley Section 404practical terms, control is equivalent to predictability.
ComplianceEveryday management creates forecasts and
Section 404 of the Sarbanes-Oxley Act requiresbudgets to predict the future. And the further into the
management to confirm the effectiveness of their ITfuture you can accurately predict, then the more
and financial controls in an "internal control report",control you have.
which is contained within the annual report (10-K)Achieve More Control Over Your Forecasts And
issued to the public. But what exactly is an internalBudgets
control report, and why is it important to you?A training class for creating well defined processes
The Section 404 Internal Control Reportshows you how to attain more control. Real world
First, the internal control report must affirmexercises and examples explain how to increase
management’s responsibility for controls andmanagement effectiveness, achieve process control,
procedure, and second, it must contain an assessmentcommunicate clear procedures, and verify if your
of the effectiveness of the internal controls andprocesses are working. So what about procedures?
procedures for financial reporting. Although both ofProcedures Effectiveness
these issues might at first appear difficult to solve, theyFor dealing with Section 404 of the Sarbanes-Oxley
are actually not as hard as you would think.Act, you can look at products like the Management
Management’s Responsibility for Controls andCFO Value Series that includes Accounting, Human
ProceduresResources, as well as policies, procedures and forms
Affirming management’s responsibility forfor other departments. Such procedures will save you
controls and procedures means more than to simplytime researching best practices, creating a standard
say management believes in or trusts their system.format, and thinking of clear and concise paragraphs to
The affirmation will also need to include a program forwrite.
a code of ethics for senior financial officers. TheEasier Section 404 Compliance
program must include prompt disclosures of anyYour internal control report is the key to your
changes to your ethics program. So how do you doSarbanes-Oxley Section 404 compliance. You should
this?also look at a business ethics and compliance program,
Business Ethics and Compliance Programattend a training class for creating well-defined
You can easily implement a business ethics programprocesses to learn more about management
using a step-by-step guide for developing youreffectiveness, and use a CFO Management Value
firm’s business ethics and compliance program.Series to speed the development of your procedures.
This manual will save you time researching, writing andYou want to achieve fast, easy, and effective relief
editing your program. It provides sample policies,for your Sarbanes-Oxley Section 404 compliance.
surveys, forms and training session outlines that are