sarbanes oxley 404

(Sec. 202) Mandates: (1) preapproval by the audit committee of the issuer of all auditing and non-auditing services provided by an auditor; and (2) disclosure of such preapproval in periodic reports to investors.

(Sec. 203) Mandates: (1) audit partner rotation on a five-year basis; and (2) auditor reports to audit committees of the issuer.

(Sec. 204) Requires an auditor to report timely to the audit committee: (1) critical accounting policies and practices used in the audit; (2) alternative treatments and their ramifications within generally accepted accounting principles that have been discussed with management officials; (3) the treatment preferred by the auditor; and (4) material written communications between the auditor and senior management.

(Sec. 206) Prohibits an auditor from performing audit services if the issuer's senior executives had been employed by such auditor and had participated in the audit of the issuer during the one-year period preceding the audit initiation date (conflict of interests).

(Sec. 207) Directs the Comptroller General (GAO) to report to Congress on the potential effects of mandatory rotation of registered public accounting firms (limiting the number of years such firms may remain auditor of record for a particular issuer).

(Sec. 209) Declares that State regulatory authorities should determine independently the standards for supervising nonregistered public accounting firms and consider the size and nature of their clients' businesses audit.

Articles on sarbanes oxley:

• Sarbanes Oxley Overview
  
  
• Applications and Goals of the Act
  
  
• Summary of Title I: Accounting Oversight Board
  
  
• Summary of Title II: Auditor Independence
  
  
• Section 401: Disclosure of Reports
  
  
• Section 802: Destroying Documents and Criminal Penalties
  
  
• Section 906: Corporate Responsibility for Financial Reports