SOX for small subsidiary of a US company in UK 1796
Tricks last edited by
I am a total SOX virgin looking for some insite.
Will SOX apply to UK business that has a turnover of approx GBP8m if it has a US parent company? (Manufacturing sector)
Are there any get outs for SME companies in this position from the burden of SOX?
EMM last edited by
Welcome to the forum.%0A Your company’s requirements for SOX will depend on the consolidated balance of your US parent company and whether or not they need to be sox compliant.%0A If your parent company need to comply with SOx then:%0AAt the most basic level, your parent company will determine you as ‘in scope’ if either your total revenue or total assets (excludes liabilities) equal 5% of their consolidated balance as at financial year -end.%0AEven then, however, you may fall into a limited scope requirement, as the parent company will need to have a certain % coverage over all consolidated balance sheet items.%0AIn addition, ALL subsidiaries will need to comply with the Group’s Company Level Controls. These are quite straightforward however, as they largely consist ( at subsidiary level) of compliance with group Policies and procedures, Codes of conduct, and ethics.%0AI would suspect that your scope will be limited to Company Level controls based on the value of your revenue. Your Parent Company should have informed you by now if you will be in scope for a 31.12.2006 year end. If in doubt, I woudl suggest contacting them.%0A Hope this helps.
Chhaava last edited by
Just to clarify. What we mean by’Company Level Controls’ is nomenclatured ‘Entity Level Controls’ in the Big 4 Lingo here in the US. Or you can say ‘tone at the top.’