Sarbanes Oxley Act 2002 - Section 404

The Sarbanes Oxley Act (also known as SOX) is a new requirement that the Securities Commission (SEC) in the US requires for all companies listed on US stock exchanges.

However, a large number of US companies who are not listed are trying to comply with Sarbanes Oxley as a matter of good business practice.

SOX 404 requires companies to document and evaluate all internal business processes and systems in order that the directors can have control over all of these areas and effectively reduce the possibility for error.

Tax is a major area where there can be a lack of well documented internal controls especially in the area of tax planning.

The various steps needed for SOX 404 compliance in tax matters is no difference than other internal control processes needed, which would include identifying disclosure risks, reporting deficiencies and documenting and evaluating the controls in place.

If a US company trades in the European Union, especially if it is selling goods and products, it is necessary to be compliant with SOX 404 and the relevant conditions.

We can assist US based CPA’s and clients to review their activities and the impact that VAT has on them. We can document and evaluate the various control processes needed to ensure that VAT is being correctly accounted for in the relevant European Union member state.

If you would like any more information about our services, please contact us.