Investors are willing to pay more for companies they perceive as well governed. In the U.S., the U.K., and continental Europe, good governance practices reap rewards in the form of greater performance pressures on management, stronger brand positioning, and increased attractiveness to top talent.
     
   
     
     
     
   
Sarbanes-Oxley Act Corporate Check List
Has your audit committee established a procedure for handling complaints about accounting and auditing matters, including the anonymous, confidential submission of complaints from employees?
Has management assessed the effectiveness of your internal controls and procedures for financial reporting and have public accountants certified these procedures?
Is your Board’s audit committee made up of “independent” board members? (Board members who are not employed by the company and who receive no compensation from the company other than for board duties)
Is at least one member of your audit committee a “financial expert”? (Someone with experience as a CPA or CFO who understands generally accepted accounting principles, financial statements, accounting controls, and audit committee functions)
Has your audit committee established a procedure for handling complaints about accounting and auditing matters, including the anonymous, confidential submission of complaints from employees?
Is your company’s auditing firm truly “independent”? (Firm should not provide any non-audit services while performing the audit; the audit partner should be rotated within 5 years; your CEO, CFO or other senior financial officer should not have been employed by the firm or have participated in immediate prior audits; firm should report directly to your audit 		      Are your financial disclosures reflective of all material correcting adjustments and all material off-balance sheet transactions?
Does the CEO personally review and sign all annual and quarterly reports to the SEC? (Although not specifically required, the legislation also encourages CEO signature of tax returns)
Has your company committed to making no further loans to executives, except for home improvement, consumer credit, and other limited purposes?
The new law stipulates that electronic filing by Section 16 iinsiders (directors, officers and greater than 10% beneficial owners), will be required beginning no later than July of 2003. Individual persons, not companies, must have CIK and CCC codes to file electronically via EDGAR or file signed paper versions of the appropriate form within two business days following a qualifying transaction. Are you ready?
  
       
         
                     

If you answered “no” to the first question, call BAS today to find out more about Virtual Open Door.

If you answered “no” to any of these questions, or if you aren’t sure, talk to Board Advisory Services.

    
                     
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