• Internal Control Reports and Revised Certifications
  • September 24, 2003
  • Law Firm: Harter, Secrest & Emery LLP - Rochester Office
  • On June 5, 2003, the SEC adopted final rules under Sarbanes-Oxley Section 404 which require management to report on its internal control over financial reporting in its annual report on Form 10-K (U.S. companies) or Form 20-F (foreign companies) and to evaluate and disclose changes in internal control that occurred during a fiscal quarter. Although the final rules provide some guidance, companies will be required to exercise some discretion in creating a framework of internal controls over financial reporting as well as in its assessment of these controls. The SEC has also adopted revisions to the manner of Certification of Disclosure in Exchange Act periodic reports and in the placement of the certifications.