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When asked about the Public Company Accounting Reform and Investor Protection Act of 2002, popularly known as the Sarbanes-Oxley Act (SOX), William H. Donaldson, Chairman, U.S. Securities and Exchange Commission pronounced that SOX, "represents the most important securities legislation since the original federal securities laws of the 1930s." Donaldson further added “the act effects dramatic change across the corporate landscape to re-establish investor confidence in the integrity of corporate disclosures and financial reporting."
Sarbanes-Oxley sections 302, 906 and 404 are currently at the forefront of SOX compliance issues. Section 302 – Corporate Responsibility for Financial Reports, states that the CEO and CFO must prepare a signed statement that will accompany all financial reports filed with the SEC; verifying their accuracy. Failure to do so or doing so while knowing the information in the financial reports is inaccurate will invoke Section 906 -Corporate Responsibility for Financial Reports, which outlines the penalties of non-compliance with Section 302.
Section 404 – Management Assessment of Internal Controls, requires public companies to file an annual internal control report as part of their annual reports. This report addresses management's responsibility to establish internal controls over financial reporting, as well as an evaluation of those control’s effectiveness. The SEC also requires that reporting companies must maintain disclosure controls and procedures which ensure that information to be disclosed is recorded, processed and accurately reported within the required time frame.
And this is where RAY • ALLEN International can help, via RACSystem©, the RAY • ALLEN International Control System. Specifically, Sarbanes-Oxley requires that publicly traded companies provide reasonable assurance regarding prevention, or timely detection, of unauthorized acquisition, use or disposition of the registrant’s assets that could have a material effect on their financial statements.
RACSystem© is the actual control system which our clients use to monitor and access IT assets. RACSystem© provides an accurate, current assessment and risk evaluation of a client's IT assets and their financial value to the company. This includes the dollar value of the assets, risk assessment, dollar exposure to risk, pending inventory, and readily accessed asset history.
And unlike general asset management software, the RAY • ALLEN International Control System program integrates your resources with our team through a customized web based application. This allows you to integrate existing network monitoring systems with RACSystem©, and integrate the network with financial reporting systems. You might consider RACSystem© to be your “asset management system’s” management system.
Additional Information
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