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Sarbanes-Oxley Act

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Sarbanes-Oxley Act - Summary of Key Provisions | |
Source: Banking Industry Overview: Version 1
Instructions: Use this SkillGuide as a reference tool for checking compliance requirements under the Sarbanes-Oxley Act. Topics | Possible Action Items for Banks | Public Company Accounting Oversight Board | Establishment and operation | Prior to audit work done by an external auditor, confirm that the audit firm plans to register with the Public Oversight Board.Once rules for registering are in place, confirm that the audit firm is registered and is in compliance and good standing with the Public Oversight Board rules. | Auditor Independence | Segregation of audit and other services | Request that the bank’s accounting department determine what payments have been made and/or agreements signed with accounting firms for services other than financial statement audits. Determine whether those functions need to be performed on an ongoing basis and, if so, prioritize such services to evaluate whether the services should be performed by a different firm.Discuss with the audit committee any non-audit services that need to be continued by the external audit firm and request approval.Establish procedures for a single member of the audit committee to approve of non-audit services that may need to be performed by external audit firm. | | Rotation | Inform the audit committee that the external audit partner and reviewing partner will rotate every 5 years. | Corporate Governance | Board of directors | Amend the audit committee charter or description to acknowledge that the public accounting firm reports directly to the audit committee and that the audit committee is directly responsible for functions described.Establish procedures so that the functions described are understood by the accounting firm, the issues are discussed on a timely basis, and on a time frame that is...

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