SOX Section 404 compliance challenges facing foreign issuers
In the U.S., both large- and small-size public companies have been subject to the requirements of Section 404 of SOX (the Sarbanes-Oxley Act) for quite a long time. American businesses operating outside the United States and preparing statutory reports earlier than required are busy completing assessments of their financial reporting controls.
Foreign issuers are required to disclose the status of internal controls in annual reports at or after the end of the reporting year, which closes on 15 July 2005. Although the U.S. SEC postponed the introduction of Section 404 several times, we strongly recommend that foreign issuers keep their SOX Section 404 compliance plans at the same scale and scope.
The article SOX Section 404 challenges facing foreign issuers talks about the experience foreign issuers have gained and major challenges you may face as a business when planning SOX Section 404 compliance.