Great River, NY (PRWEB) October 21, 2004
Under the rule, Section 301 of the Sarbanes-Oxley Act of 2002 listed issuers must be in compliance by the earlier of their first annual shareholders meeting after January 15, 2004, or by October 31, 2004. Foreign private issuers and small business issuers have until July 31, 2005.
Section 301 of the Sarbanes-Oxley Act requires the Audit Committees of all regulated companies to establish programs for the receipt and treatment of complaints or concerns about accounting matters. Subpart 301(4) of the Act states that Audit Committees shall establish procedures for:
(a) the receipt, retention and treatment of complaints received by the issuer regarding accounting, internal accounting controls, or auditing matters; and
(b) the confidential, anonymous submission by employees of the issuer of concerns regarding questionable accounting or auditing matters.
Failure to comply with these provisions comes with a high cost, as Congress has directed the Securities and Exchange Commission (SEC) to promulgate rules requiring the national securities exchanges and associations to de-list any company that fails to implement Section 301.
The rules do not mandate specific procedures that must be established, however, the use of an independent third party anonymous hotline service provider is regarded as best practices.
ÂWhile many companies have implemented hotlines well in advance of the deadline, there is still a percentage that has not,Â says Anthony Lavalle director of the Great River, NY based company.
The Sarbanes-Oxley Act is very multifaceted. It imposes many new reforms and companies have been focusing on the more complex requirements of the Act. Now that the deadline for compliance is here, some companies may have to move quickly to get a hotline in place before October 31. ÂIf a company is committed to getting it done before the deadline we are committed and prepared to help.Â
Report it traditionally implements new service for its clients within 5-7 business days depending on specific requirements. With the push and commitment to help companies meet the deadline, we have taken steps to shorten the new service implementation process to within 48 hours. ÂWe are prepared to accept new orders as late as October 29th and guarantee service for compliance by the October 31 deadline,Â says Lavalle.
As a leading provider of third party anonymous hotline services, Report it has implemented Sarbanes-Oxley compliance hotline services for many NYSE, NASDAQ and AMEX listed companies. In addition to servicing publicly listed companies, Report it also services: private companies, non-profit organizations as well as the medical and education community.
For clients who want to implement a hotline before the October 31, 2004 deadline, Report it has the experience, technology, systems and skills to deliver a complete turnkey, 24/7, anonymous hotline service, in less then 48 hours.
For more information on Report itÂs Sarbanes-Oxley ethics and compliance hotline or to register for a weekly webinar, please call 631.224.9500 or visit http://www.reportit.net
About Report it:
Founded in 1999, Report it was the first company to harness the power of the Internet to deliver innovative technology based, independent third party anonymous hotline services. Today Report it is the preferred and trusted hotline provider for publicly listed, NYSE, NASDAQ and AMEX Companies, Private Companies, Non-Profit Organizations and the Education Community.