Advisories

Sarbanes-Oxley Act Changes Best Practices For Public And Private Companies Engaged In Acquisitions

February 19, 2003
Download PDF

The Sarbanes-Oxley Act, which attempts to address issues raised by the collapse of Enron, WorldCom and other companies, and related SEC, stock exchange and Nasdaq rules will have a significant impact on companies engaged in acquisitions and may require development of a new set of best practices. Specifically, companies will need to update their due diligence procedures to avoid potential violations of these new rules as a result of acquisitions and to reduce the risks associated with CEO and CFO certifications of periodic reports.

This Client Advisory addresses some of the areas of concern and actions that might be taken by companies considering acquisitions as they relate to:

  • application of the Sarbanes-Oxley Act
  • non-audit services
  • certification issues
  • auditor independence
  • forfeiture risks
  • director independence
  • internal controls
  • non-GAAP financial measures
  • personal loans
  • enhanced disclosure
  • target’s personnel
  • evolution of GAAP

Related Practices