Tuesday, January 20, 2004

SOX is a good read

I'm 27 pages into the Sarbanes-Oxley Act 2002, and it is surprisingly easy to follow. The story so far:

The Act formed the Public Company Accounting Oversight Board (PCAOB). This body reports to the SEC and is responsible for monitoring the standards of conduct of public accounting firms who audit issuers of public securities in the USA.

In response to Bill's question about when SOX might have an impact here in the UK, section 106 states that any foreign public accounting firm which audits any issuer of public securities in the USA, or whose work contributes to an audit carried out by a US public accounting firm on such a body, falls within PCAOB jurisidiction and has to accord with PCAOB standards.

Therefore, in that respect, there is an immediate impact on UK accounting firms.

I'll report further points as I find them.