Kraft SOX404内部培训资料.pptVIP

3/21/2007 SOX 404 Introduction Contents Background of SOX 404 KICs SOX Testing Process Key Controls of Each Cycles Summary of SOX Deficiencies SOX Comes From The Enron Collapse ?In November 2001, admitted accounting errors that inflated earnings by almost $600 million over 4 years ?Stock plummeted from a high of $75 to less than $1 ?CFO ousted and indicted on 78 counts of securities, wire and mail fraud, money laundering and conspiring to inflate profit WorldCom Scandal ?Admitted accounting fraud that inflated profits by $3.8 billion from January 2001 to March 2002 (14 months) ?Stock dived from a high of $60 to less than $1 ?Former CFO and ex-Controller arrested and face prison terms of up to 65 years if convicted Sarbanes – Oxley 404 Two person: US Senator Paul Sarbanes US Congressman Michael Oxley Suggest a Legislation : Sarbanes – Oxley (Section 401-404) SOX 404 – Require an internal control report for financial reporting. Overview of SOX 404 Legislation Each annual report to contain an internal control report, which: states the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting; and contains an assessment, as of the end of the most recent fiscal year, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting. The auditor will attest to, and report on, the assessment made by management. What is known is that Altria/Kraft management must make an assessment of the internal controls for financial reporting. PricewaterhouseCoopers must issue an attestation opinion on the design and effectiveness of those financial internal controls. Overview of SOX S404 Legislation The SEC has indicated that it will review compliance with S404 at least every three years. Any such review is likely to be detailed and extensive. Our experience of working with the SEC and the current interpretations of the rules indicate th