Client Advisories and Bulletins

SEC Adopts Additional Rules To Implement Provisions Of The Sarbanes-Oxley Act

February 19, 2003

Over the last two weeks of January 2003, the Securities and Exchange Commission adopted rules and amendments designed to implement various provisions of the Sarbanes-Oxley Act of 2002 relating to auditors, audit committees and financial executives. These rules:

• Require public companies to disclose whether their audit committees include an "audit committee financial expert";
• Require public companies to disclose whether they have adopted a code of ethics that applies to their principal officers;
• Require auditors to retain workpapers for seven years; and
• Provide for enhanced auditor independence and require disclosure by public companies regarding the provision of certain services by the independent auditor.