Lessons Best Learnt Early - Securities and Banking Update May 2005

The first attestations in the US under Sarbanes-Oxley Section 404 (SOX 404) have taken place and whilst the attestation requirement for foreign companies was recently deferred, many have chosen to press ahead with plans for the current year. Alan Chaudhuri, reviews the experiences to date and sets out some lessons learnt from the US.

Whilst the recent announcement by the SEC to delay attestation requirements for foreign registrants has been welcomed, most organisations have taken the decision to press ahead with documentation and testing plans in the current year. Decisions have been driven by a need to ensure that momentum is not lost as well as a desire to use the extended period to enhance documentation and identify and rectify potential weaknesses. Set out below are some areas where lessons learnt from organisations in the US may prove helpful.