December 2006 Volume 10, Number 4

The SEC Revises Sarbanes-Oxley Deadlines, SoftLanding Announces New SOX White Paper

By Mary Langen, Marketing Projects Leader

We have a couple news items that you will find interesting if your company is one of those affected by Sarbanes-Oxley (SOX) requirements.

The U.S. Securities and Exchange Commission (SEC) recently announced revised deadlines and other steps intended to minimize the burden that SOX Section 404 imposes, particularly on smaller companies and foreign private issuers.

In addition, SoftLanding has a new white paper that can help you with compliance issues, whether you are facing your initial SOX audit or you are a seasoned SOX veteran who wants to improve your IT processes.

First, here’s a summary of the latest SEC announcements:

• Foreign companies that are listed on the New York Stock Exchange and meet the definition of large accelerated filer must ensure that their annual filings fully comply with SOX for their next financial year ending on or after July 15, 2006.

• Foreign private issuers that are accelerated filers, but not large accelerated filers, and that file their annual reports on Form 20-F or 40-F will need to include the management certification required by Section 404 in their Form 20-F or 40-F annual report for fiscal years ending on or after July 15, 2006. Auditor attestation will not be required until their next fiscal year ending on or after July 15, 2007.

• The SEC also proposed an extension of dates for non-accelerated filers — domestic and foreign public companies with a capital valuation less than $75M. While management would have to provide the certification required by Section 404 for fiscal years ending after December 15, 2007, auditor attestation would not be required until fiscal years ending after December 15, 2008. Businesses going public would not be required to comply with Section 404 until the release of their second annual report. The changes, proposed in August, also give these companies and their auditors another year ‎to adapt to upcoming changes in Auditing Standard No. 2, and the opportunity to benefit from new management guidance coming from the SEC.

New! Tips for Sustainable SOX Compliance

The good news is if you are a TurnOver customer, you already have a head start on meeting compliance requirements, with tools in hand to address at least 50 SOX–related COBIT objectives. We also offer a lot of helpful information in our new white paper, “The IT Manager’s Working Guide to Sustainable SOX Compliance.‎” It’s packed with resources and tips, including a SOX-specific list of COBIT 4.0 objectives. Take a moment to download it and receive

• the latest guidance from the SEC,
• information on internal control frameworks, with a focus on COBIT 4.0,
• tips on overcoming real-world compliance challenges,
• suggestions on how to move toward sustainable compliance,
• a section on using technology to facilitate SOX compliance, and
• a detailed list of 141 specific audit points that indicates where technology can support your compliance efforts.

Good luck with your compliance and ongoing sustainability efforts. Please feel free to email us at SOXresources@softlanding.com if you would like more information on any of our products. We would also like to hear from you if you are willing to tell us about your compliance experience.

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