SEG to Provide SAS 70 Recommendations to SEC
By April 1, 2005, the AMF Senior Executives Group plans to submit comments and insights to the SEC on the experiences of asset managers and auditors in implementing control requirements under Section 404 of Sarbanes-Oxley. John Gidman of Loomis Sayles, who serves as the Chairman of the SEG SAS 70 Advocacy Committee, has taken the lead with other SEG members on developing SAS 70 best practices for the testing of internal controls for financial reporting purposes. In addition, the SEG and staff will participate in the Commission's April 13th Roundtable on Sarbanes-Oxley 404.
The SEG SAS 70 Committee is currently developing a web site specifically for this best practices advocacy initiative. The web site will contain critical information such as:
- Best practice recommendations on testing internal controls
- A library of existing policies and procedures
- Examples of current documentation relating to SAS 70
- Information on Type I and Type II SAS 70
- Education and news items relating to the overall SEG SAS 70 Advocacy Initiative
These actions items are in tandem with SEC Chairman William Donaldson's recent testimony before the U.S. Senate Banking Committee. In his remarks, the Chairman stated that the Commission will seek to identify best practices for complying with SEC and PCAOB rules associated with the implementation of section 404 of Sarbanes-Oxley.
Click here to read the full testimony of Chairman Donaldson
Chief Operating Officers and other senior executives at asset management and accounting firms are invited to participate in this advocacy initiative. Please contact Joseph Sack, Executive Vice President at The Bond Market Association / SEG Executive Director at 646.637.9200. Please note that Thomas Hirschfeld, COO of Investments at J. & W. Seligman is the Chairman of the AMF Senior Executives Group.