Sarbanes-Oxley Update: SEC Issues Final Rules Prohibiting Improper Influence On Auditors
- Topics:
- Sarbanes Oxley Compliance
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- Dorsey & Whitney,
- Sarbanes-Oxley Act,
- Sarbanes-Oxley,
- Regulatory Compliance,
- Regulations,
- Prohibition,
- Policies And Procedures,
- Human Resources,
- Government,
- Financial Statements,
- ...
- Source:
- Dorsey & Whitney
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Overview: The Securities and Exchange Commission has issued final rules prohibiting corporate directors and officers from exercising improper influence on auditors as required by Section 303(a) of the Sarbanes-Oxley Act of 2002. The new rules, prohibit “any action to coerce, manipulate, mislead or fraudulently influence any independent public or certified public accountant engaged in the performance of an audit or review of financial statements. Violation of the new prohibition may result in cease-and-desist orders, injunctions as well as civil or criminal penalties. The new prohibition goes into effect on June 27, 2003. The adopting release lays out an illustrative list of types of conduct that could lead to violation of the new prohibition. The adopting release clarifies that the prohibition applies to any type of issuer that files financial statements with the SEC. It also clarifies that those acting “under the direction” of a director or officer may include persons outside their supervisory chain of command, including lower level employees, corporate vendors, customers, creditors, attorneys, auditor personnel, securities professionals and consultants.
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Format: PDF | Size: 230KB | Date: May 2003 | Pages: 3
