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U.S. FPIs urged not to slack off 404 implementation.

Foreign companies listed in the U.S. were going right to the wire over implementing compulsory internal financial controls before the U.S. Securities and Exchange Commission (SEC) announced a delay. Indeed, four out of 10 foreign private issuers (FPIs) questioned in an Ernst & Young survey said they had anticipated being compliant with Section 404 of Sarbanes-Oxley with only one or two months to spare when the deadline was extended. This would have left little or no contingency for unexpected issues or delays in completing important remediation work.

E & Y's Global Leader of Business Risk Services, Tom Bussa, said, "If foreign listed companies had been relying on an extension from the SEC and an extension was not forthcoming, many of them would have had no room to maneuver, so now is not the time to ease off; companies must still keep a foot on the gas and can learn from their U.S. counterparts."

Bussa noted that FPIs have the benefit of referencing peer data (provided by U.S. companies) as well as earlier U.S. accelerated filer surveys to help identify and address likely challenge areas that could slow progress, impact quality and increase cost.
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Title Annotation:globalVIEWS; foreign private issuers
Author:Heffes, Ellen M.
Publication:Financial Executive
Article Type:Brief Article
Date:Jun 1, 2005
Words:196
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