Professional Documents
Culture Documents
principal executive officer (CEO) principal financial officer (CFO) officers performing similar roles to the CEO or CFO
The signing officers are to certify that they have actually reviewed the report being published The signing officers should understand all aspects of the report and raise any concerns they have about its contents
An effective process should exist within the organisation to pre-check correctness and completeness of the report Consideration should be given to introducing an upward certification process within the organisation
Sarbanes Oxley prohibit Issuers from trying to reduce the legal implications of Section 302 through:
Re-incorporation outside the United States
Engaging in a transaction that results in transfer of corporate domicile outside the United States
Relates to requirements of Sarbanes Oxley Act Sections 302, 404 and 906a
Creates chain of certifications for the internal control system (ICS) based on agreed procedures and check lists
Involves all levels of specialists and management in the ICS certification process
Each specialist responsible for a business process with a material risk profile certifies that specific business process Each level of management certifies their own area of responsibility based on the individual business process certifications received
Results can form basis of report required for Section 404 reporting
All areas of the business are covered Provides structured audit trail Easier to re-certify specialist areas of the business Easier to follow up to correct deficiencies and problems All management have a corporate responsibility for the process
Develop procedures covering the certification process Design common forms and checklists Train staff in understanding internal control system (ICS) Train staff in evaluating the ICS and assessing risks Monitor and report on deficiencies identified
Make all specialists and management accountable for the certification process Ensure each process re-evaluated each time the certification forms are required Have evaluation process audited and checked Maintain audit trail of check lists and certifications
SARBANES OXLEY