Sarbanes oxley backdating
But Glass Lewis, in the report, said the SEC has not enforced the two-day filing rule, possibly leading to many more instances of backdating. The company earlier this month said it expects to restate financial results for the past three fiscal years and the first quarter of the current year due to errors in the dating of stock options.More than 140 companies have launched internal reviews or are under government investigation over possible manipulation of stock option grant timing. In several cases Glass Lewis said the Form 4s were repeatedly filed late, raising questions about the quality of internal controls over financial reporting at those firms.Looking toward 2006, it is clear that this trend will continue, and for supply chain leaders, the time is right to establish an active role in your company's corporate governance strategies.As we know, SOX legislation was enacted in response to the serious misconduct of the 1990s, which had a profound impact on institutional and private investors' 401(k) accounts. exchanges, there are three primary areas addressed by SOX: SOX will force CEOs and CFOs to rely on their supply chain leaders to take a proactive role in corporate governance.As a result, companies are well advised, among other things, to address in their internal control policies requirements and guidelines for pricing and pricing actions, process documentation for such actions, and a procedure for investigating and responding to employee reports of internal violations. 2013), where that court found that on their face, the Dodd-Frank anti-retaliation provisions unambiguously limited protection to whistleblowers reporting to the SEC, and that, therefore, the SEC’s contrary guidance was not entitled to deference.While most of the requirements of Sarbanes-Oxley apply only to an “issuer,” or a publicly-traded or listed company, some commentators have recommended that even private companies should strive to comply with the full demands of this law.
The new regulations should have removed most opportunities for backdating. A spokesman for Websense, Cas Purdy, said, “The late filings were unintentional and we filed the appropriate forms when we became aware of it.” The other companies could not immediately be reached for comment. () was also mentioned in the report as having been late in filing Form 4s after August 2002.In direct response to the high-visibility corporate finance scandals involving such companies as Enron and World Com, the Sarbanes-Oxley Act — a significant and sweeping piece of securities reform legislation — became law in 2002.Because one of the main purposes of the act is to facilitate more accurate public disclosure of financial information and provide accountability measures in reporting and monitoring of corporate conduct, its impact on pricing practices and antitrust compliance in general is to cause more rigor than had been present in many companies before the law was passed.While Sarbanes-Oxley was not created with the express intent of policing antitrust compliance in pricing matters, the broad scope of the act clearly affects this area.Some of the most obvious examples in the context of pricing policies and related issues include tighter controls on the accounting and disclosure procedures relating to the treatment and use of discounts, allowances and promotional funds in general, regardless of whether a company is giving or getting them.