Sox Section 407

A violation of rules of the public company accounting oversight board board is treated as a violation of the 34 act giving rise to the same penalties that may be imposed for violations of that act.

Sox section 407. In the proposing release we solicited comment as to whether we should use the term financial expert in our rules consistent with its use in section 407 of the sarbanes oxley act or whether a different term such as audit committee financial expert would be more appropriate. Disclosures in periodic reports. Commission rules and enforcement.

Summary of sarbanes oxley act of 2002 section 3. Section 407 of the sarbanes oxley act does not require disclosure of whether the financial expert is independent. In the final rules the sec uses the term audit committee financial.

In 2003 the sec adopted rules implementing section 407 of the sarbanes oxley act of 2002 sox requiring a public company to disclose whether at least one audit committee financial expert acfe serves on its audit committee or to disclose the reason for not having such an expert. A number of commenters expressed a concern that neither the term financial expert nor audit committee financial expert accurately reflects the required experience and expertise of the type of expert contemplated by section 407 and our proposed rules. All annual financial reports must include an internal control report stating that management is responsible for an adequate internal control structure and an assessment by management of the effectiveness.

77k as a result of being designated or identified as an audit committee financial expert pursuant to this item 407. However we believe that such disclosure may be important to investors. On january 23 2003 the securities and exchange commission the sec released final rules implementing sections 406 and 407 of the sarbanes oxley act of 2002 the act.

Section 407 of the sarbanes oxley act of 2002 requires the sec to issue rules requiring each reporting company to disclose whether or not and if not an explanation of why not its audit committee has at least one financial expert as defined by the sec s rules.