Sponsored by International Quality and Productivity Center Conference on 

THE CHANGING ROLE OF THE INTERNAL AUDITOR 
March 31-April 2, 2003 * Georgian Terrace Hotel * Atlanta, GA 

<See Details at the end of this email>

Seats are limited so sign up now at www.iqpc.com!
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Repealed? Not many that I am aware of, but it sure does not mean that it
could not be modified, reduced, changed etc.  And in my youth, my
grandfather used to tell me that you could not legislate morality, which is
what we are trying to do.  It just won't work. What are we seeing for
results? A lot of people leaving boards or refusing to join because they
don't want the risk.  And I am sorry, but weren't the CEO's and CFO's
already responsible for what was done and reported? Don't the laws, just
specify a penalty for what they already were responsible for?

I just spent a day in class going over what was expected from us and when
all was said and done, it looked like all we were going to have were ISO
9000 certified companies, with an extra boiler plate form in the annual
report. 

Just my humble opinion.

Bob Connors
IT Audit Specialist

-----Original Message-----
From: George Matyjewicz
To: [EMAIL PROTECTED]
Sent: 3/1/03 12:28 PM
Subject: RE: HR Speaking Opportunity

Sponsored by International Quality and Productivity Center Conference on


THE CHANGING ROLE OF THE INTERNAL AUDITOR 
March 31-April 2, 2003 * Georgian Terrace Hotel * Atlanta, GA 

<See Details at the end of this email>

Seats are limited so sign up now at www.iqpc.com!
***************************************

At 10:38 AM 3/1/2003 -0500, [EMAIL PROTECTED] wrote:
>Before you start going over board on SOX you may just want to read this
>article,
><http://www.electronicaccountant.com/ElectronicAccountant/index.cfm?txt
Fuse=dspShellContent&fuseAction=DISPLAY&numContentID=21271&numSiteID=4&n
umTaxonomyTypeID=11&numTaxonomyID=179>
>There seems to be the start of a backlash against the bill that was
>initiated, designed, written and signed in haste, JUST to show the
public
>that the government was doing something in response to the Enrons of
the
>world.  It is about time someone realized just how poorly conceived it
was.

Have you ever heard of a law that was repealed because of haste (except
for 
Prohibition of course ;-)?

Isn't SOX really Turnbull with a twist (jail term)?  In fact the
Institute 
of Chartered Accountants in England & Wales sent a letter of comment in 
response to the SEC's consultation document entitled "Disclosure
required 
by Sections 404, 406 and 407 of the Sarbanes-Oxley Act 2002".   In it
they 
say that the Institute has been closely involved with developments in 
corporate governance and internal control in the UK for over ten years 
(their Cadbury report).  It's a lengthy paper, but may be a good read. 
http://www.sec.gov/rules/proposed/s74002/rhodgkinson1.htm

Many of our colleagues in the UK are looking at some of the aspects of
SOX 
in a positive light.   They experienced a crisis of confidence in
financial 
reporting following corporate scandals in the late 1980s and early 
1990s.  That ultimately led to the publication in 1992 of the highly 
respected `Report of the Committee on the Financial Aspects of Corporate

Governance' (the Cadbury Report).   Hence, they strongly support the
goal 
of improving the quality of financial reporting.

IMHO, if anything,  there will be a "new & improved" version of SOX, 
perhaps Turnbull/Cadbury Americanized (we need to have our opinions in 
everything ;-).  For example, I think the Boards of Directors need more 
control or more understanding of the inner workings of a company - not
in 
line positions, but as protectors of the assets for the 
shareholders.  While the CEO/CFO is responsible for sign off, what
happens 
when they are in cahoots and are both crooks?  Sure, they can get caught

and go to jail, but that's after the fact - when the company is beyond 
repair.  (I lived through an experience as an officer in an
international 
financial services company)

As such, I think we need a new organization chart with a C-Level officer
on 
the same level as the CEO who reports directly to the Board.  And, all 
reporting of issues within the organization needs to be reported as is, 
with exceptions to changes made by superiors noted.   I'm working on a
new 
white paper addressing these issues as I see them.  Stay tuned.

FWIW

George



_______________________________________________________
George Matyjewicz, Ph.D.
Managing Director - Consulting
D'Arcangelo Software Services
Telephone: 914-694-4600  Toll free: 877-839-8222
Fax: 914-694-3658 mobile: (678) 428-7378
E-mail: [EMAIL PROTECTED]


This conference provides expert speakers addressing the latest and most
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This conference provides expert speakers addressing the latest and most topical issues 
regarding new processes & practices helping internal auditors successfully meet the 
expectations of BODs & auditing committees, senior executives, clients and external 
consultants. Includes case studies from Fidelity Investments, Bon Secours Health 
Systems, Staples, Schwan Food Company, FedEx, Anchor Bancorp, and others. 

AUDIT-L SUBSCRIBERS WILL SAVE $200 using discount code: A434E. 

Register by calling 1-800-882-8684, email to: [EMAIL PROTECTED] or 
online at www.iqpc.com! Note: This discount cannot be combined 
with any other offer. Payment in full upon registration. For 
cancellation and conference policies, please visit www.iqpc.com. 

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