Manufacturing News

Sarbanes-Oxley: No Escape

December 1, 2006
/ Print / Reprints /
/ Text Size+

Although the US Securities and Exchange Commission (SEC) granted temporary relief to smaller public companies from Sarbanes-Oxley (SOX) compliance reporting, more frequent than quarterly filing/reporting may be in the wings for all public companies, according to a white paper from six international accounting companies. For food manufacturers with customized ERP systems, SOX-compliant software modules will have to be compatible with more frequent reporting as well as supporting controls management and automation, which will create IT headaches for some producers and certainly increase operating expenses for all.

In the latter part of 2006, SEC granted relief to smaller (market value less than $75 million) public companies by extending the date six months by which non-accelerated filers must start providing a report assessing the effectiveness of the company’s internal control over financial reporting on fraud-prevention controls.

However, according to the white paper, the big six auditing firms are requesting more frequent reporting than the 70-plus year old quarterly reporting required in the US, saying it would better meet the needs of today’s investors and be more compatible with international standards.

According to the white paper, “Global Capital Markets and the Global Economy: A Vision From the CEOs of the International Audit Networks,” Internet technologies such as XBRL (Extensible Business Reporting Language) will revolutionize the way investors, governments, and companies themselves use, analyze and generate information. With these technologies, investors and regulators can have nearly real-time access to financial and other company information, making quarterly profit reporting no longer relevant.

The white paper was published by BDO International, Deloitte, Ernst & Young, Grant Thornton International, KPMG International, and Pricewaterhouse Coopers. It can be found at

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

You must login or register in order to post a comment.



Image Galleries

Fabulous Food Plant: Paramount Citrus

Learn more about this fabulous food plant in Food Engineering's article, found here.


Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts


Food Engineering Magazine

Food engineering magazine 2014 april cover

2014 April

Catch a preview of the Powder and Bulk Show in this April 2014 edition of Food Engineering. Also, be sure to check out a coffee stick making a real stir and a major advancement in the the pet food industry.
Table Of Contents Subscribe


Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Food Master

Food Master Cover 2014Food Master 2014 is now available!


Where the buying process begins in the food and beverage manufacturing market. 

Visit to learn more.


FE recent tweets