RE: SOX non compliance..

["John Earl" <john.earl@xxxxxxxxxxxxx>]

It will appear in their financial statements.  Section 404b requires
that management obtain an attestation from an external auditor verifying
that internal controls are in place to prevent tampering with financial
results. 

That letter from the auditor will appear in company financial statements
indicating that the company either has adequate controls in place, or
that the company has material deficiencies of the audit standards.  For
those companies that are found to have material deficiencies, this
coming earnings season should provide great excitement.

The big open question is whether Wall Street will punish companies with
"material deficiency" letters.  SOX is interesting because one of the
enforcement mechanisms may turn out to be the stock market.

jte  


--
John Earl | Chief Technology Officer
The PowerTech Group
19426 68th Ave. S
Seattle, WA 98032
(253) 872-7788 ext. 302
john.earl@xxxxxxxxxxxxx
www.powertech.com 
 

 
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> -----Original Message-----
> From: midrange-l-bounces@xxxxxxxxxxxx [mailto:midrange-l-
> bounces@xxxxxxxxxxxx] On Behalf Of Shields, Ken
> Sent: Wednesday, November 17, 2004 10:18 AM
> To: Midrange Mailing LIst (E-mail)
> Subject: SOX non compliance..
> 
> Hello group..
>               I was curious.
>               Obviously companies won't advertise or mention
> the fact that they were deemed in non compliance with
>               the SOX law.
>               Is this something that must appear on their
> Financial statements?, or does the SEC publish a list?
> 
> Ken Shields
> PPG Canada Inc
> 155 First Ave.
> Oshawa, Ontario L1H 7L3
> PH:905 725 1144 (326)
> FAX:905 433 8712
> 
> 
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