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Chapter 9

US Sarbanes-Oxley (SOX)

It is relevant to US companies, directors of subsidiaries of US listed
businesses and auditors who are working on US listed businesses.

8.1 Differences to UK Combined Code

 Enforcement.

 Documentation.

8.2 Key points of SOX

 Auditor Auditors restricted in extra services they can provide
independence

 Audit partner Senior partner must be changed every 5 years

 Restrictions on Directors prohibited from trading in shares at ‘sensitive
dealing times’

 Increased financial Reports to detail off-balance sheet finance
disclosures

 Certification of Must be vouched for by CEO and CFO
accuracy of FS

 Internal control report Annual report must include statement on internal
control systems

 Audit committee US stock exchanges are prohibited from listing any firm
that does not have an audit committee.

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