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Internal Control Reports: The Next New Thing
Many public companies have already begun to prepare for compliance with Section 404 of the Sarbanes-Oxley Act of 2002 (the Act). Management and directors may not be clear on the framework for Section 404. Although Section 404 does not require disclosure in Annual Reports for the calendar year-end 2003, requisite lead times suggest that by now companies must be working diligently on compliance planning.
The Securities and Exchange Commission (SEC) issued final Section 404 rules on June 5, 2003. The rules require each public company's Annual Report to contain an internal control report:
- Stating management's responsibility for establishing and maintaining adequate internal control over financial reporting; and
- Containing an assessment as of the end of the fiscal year of the effectiveness of the company's internal control over financial reporting.
These rules apply to all companies regardless of size. Under the new compliance schedule, a company that is an “accelerated filer” as defined in Exchange Act Rule 12b-2 (generally, a U.S. company that has equity market capitalization over $75 million and has filed at least one annual report with the Commission), must begin to comply with these amendments for its first fiscal year ending on or after Nov. 15, 2004 (originally June 15, 2004). A non-accelerated filer must begin to comply with these requirements for its first fiscal year ending on or after July 15, 2005 (originally April 15, 2005). The Commission similarly has extended the compliance date for related requirements regarding evaluation of internal control over financial reporting and management certification requirements, including certification and related requirements applicable to registered investment companies. Even for non-accelerated filers, prompt action is important, since many will have less well-developed internal controls and thus may need more time to implement improvements.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
CLE Shouldn't Be the Only Mandatory Training for Attorneys
Each stage of an attorney's career offers opportunities for a curriculum that addresses both the individual's and the firm's need to drive success.