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PeriscopeIQ Sarbanes Oxley
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Sarbanes-Oxley Act
The Sarbanes-Oxley Act dictates publicly traded SEC companies establish formal procedures to
receive, retain and address complaints regarding accounting and auditing matters.
Companies that do not have the appropriate vehicles in place to address the Act’s
compliance requirements, face significant fines comparable to the securities exchange act of 1934.
The act requires audit committees of publicly-traded companies to establish
procedures for employees to confidentially and/or anonymously report problems within the
company. Such procedures can encourage whistleblowers to report their concerns to the hotline
rather than taking them initially to outside authorities or the media.
Congress ordered final rules under the Sarbanes-Oxley Act to take effect by April 26.
The Securities and Exchange Commission (SEC) has given companies more time, requiring
them to have the rules in place no later than October 31, 2004. Companies with less
than $25 million in market capitalization and $25 million in revenue, and foreign issuers,
have until July 31, 2005 to comply with the Act. Companies that fail to comply will be
subject to delisting from the National Stock Exchanges and Securities Associations.
Please contact a PeriscopeIQ sales representative for more information on our Customer Intelligence products and services at 610.866.6001 or at sales@periscopeiq.com.
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