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Sarbanes-Oxley News & Developments
Statement on Auditing Standards No. 70Sarbanes-Oxley Section 404 meets up with an obscure auditing standard.
> > Statement on Auditing Standards (SAS) 70 spells out how an external auditor should assess the internal controls of an outsourcing service provider and issue an report to outside parties or to a client. June 2004 is the deadline for Section 404 compliance for many public companies. Finance departments have more at stake than other corporate functions in clarifying the situation, since transferring financial tasks overseas can put material transactions in the hands of outsourcers. Stan Lepeak, VP of the Meta Group, believes that incompatibilities between SAS 70 and Sarbanes-Oxley will "dampen outsourcing, at least in the short run, until outsourcers can show that they have both the adequate controls in place and evidence to prove that."
Source: CFO
Published:2004-02-23
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