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Foreign countries foreign issuers and the Sarbanes Oxley Act

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Foreign countries tend to have less stringent laws than in the US for regulating ethics and standards. How does the Sarbanes Oxley Act affect foreign corporations, if at all? Discuss, in thoughtful detail, why these companies should or should not be entitled to be exempt from this rule?

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Sarbanes Oxley Act of 2002 (SOX) applies to firms that want to issue their securities traded publicly on the US markets (issuers). Specifically, SOX applies to issuers whose securities are listed on a major US exchange held by 500 or more record holders worldwide or 300 or more record holders in the US, and those who have filed registration statements for public offerings in the US. So, basically, if you want to gain access to the premier capital markets on the planet, you have to submit to the US regulatory requirements.

While foreign corporations must comply with the entire act, ...

Solution Summary

Your discussion is 316 words and two references and includes two examples of exemptions under Sarbanes Oxley Act of 2002 for non-US issuers.

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Case Study: Roles of Management in Regulatory Compliance

Case Study: Roles of Management in Regulatory Compliance

You are preparing for the final exit meeting with Anthony's Orchard. You have probably met with management at various stages throughout the audit. Now it is time to meet with the senior management and the board to review and provide the audit findings and conclusions. You will also need to outline any concerns so management can develop action steps to eliminate those concerns.

• Given the limited information from previous weeks, what kind of opinion would you give to Anthony's Orchard?

• Depending on the type and complexity of the company, regulatory compliance may also involve one or more auditors. These may include an outside or independent accounting firm and/or local, state, and federal agencies. Evaluate the impact of involving additional auditors, outside auditors, or government agencies in regulatory compliance.

• As you prepare, think about the entities that could be involved in the auditing process. What are their roles in auditing Anthony's Orchard?

• How would Anthony's Orchard build transparency into their governance and compliance systems?

• What are the roles of management and the board? What controls have been put in place to comply with the Foreign Corrupt Practices Act (FCPA) to prevent bribery and corruption?

• Which regulatory agencies and which rules and regulations would be part of the overall management of compliance for Anthony's Orchard?
Be sure to include in your paper, information from, but not limited to, the Foreign Corrupt Practices Act, the Sarbanes-Oxley Act, SEC, PCAOB, and any other regulatory agencies that may have an effect on Anthony's Orchard.

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