Welcome to ESC's Sarbanes-Oxley Act Resource Center
Are you Ready for the SOX Deadlines? November 15 for Section 404,
which applies to IT ?

July 30, 2002

  • Audit committee pre-approval of auditing and non-auditing services of auditor (Section 202).
  • Prohibition on loans to executive officers and directors (Section 402).

August 29, 2002

  • Deadline for all public company principal officer certifications of annual/quarterly reports (Section 302)
  • Accelerated disclosures of insider trades [2-day rule] (Section 403)

October 28, 2002

  • Deadline for SEC to appoint a chairperson and the initial members to the Public Company Accounting Oversight Board (Section 101).

January 26, 2003

  • Prohibition on non-audit services for audit clients (Section 201).
  • Mandatory audit partner rotation (Section 203).
  • Auditors required to report to audit committee (Section 204).
  • Prohibition on audit of issuer if CEO, controller, CFO, or chief accounting officer was employed by auditor and participated in audit of issuer within prior year (Section 206).
  • ERISA notice requirements for 401(k) blackout periods (Section 306).
  • Financial statements shall reflect all material correcting adjustments (Section 401).
  • Final rules requiring all material off-balance sheet transactions to be disclosed (Section 401).
  • Final rules providing that pro forma financial information follows generally accepted accounting principles (Section 401).

April 26, 2003

  • Deadline for SEC to make determination that the PCAOB has the capacity to carry out its duties (Section 101).
      • - Public accounting firms begin registering with PCAOB - clients, fees, personnel.
      - PCAOB begins adopting/establishing audit, quality control and independence standards and rules.
      - PCAOB begins inspection/investigations of registered public accounting firms.
  • Audit committee independence requirement; revised obligations of audit committee (Section 301).
  • Prohibition on interference with audits (Section 303).

July 30, 2003

  • Deadline for SEC to submit to Congress report on adoption of principles-based accounting system by the U.S. financial reporting system (Section 108).
  • Deadline for the Comptroller General to submit to Congress report on mandatory rotation of accounting firms (Section 207).

October 26, 2003

  • Deadline for public accounting firms to register with PCAOB (Section 102).

In order to comply with Sarbanes-Oxley Act of 2002 guidelines, many companies are beginning to develop security policies that drive the compliance of their computer systems to ensure the confidentiality of financial records. In addition to that, institutions must also have a method for verifying compliance with the security policy to prove that computer systems are not vulnerable. With deadlines already here, could you survive an audit, or even worse, a lawsuit?

ESC can help you to meet legal requirements while renovating the security of your systems. ESC can

  1. Define a security policy consistent with SOX regulation and industry best-practice
  2. Audit and identify existing vulnerabilities in the security infrastructure and setup a self sufficient monitoring systems tht enforces the defined policy.

Contact us today at defendIT@1esc.com

 

Welcome to ESC's SOX Resource Center. This Section highlights the key points that impact your business. It attempts to educate those organizations that are governed by this regulation.

Subtitle A of Title V of the SOX Act and the Federal Trade Commission regulation can be found on the Sarbanes-Oxley Act of 2002 web page which can be reached directly from the FTC home page at www.ftc.gov.

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