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A Sarbanes-Oxley Tale

A Sarbanes-Oxley Tale

by Rick Turoczy on August 30, 2006

The term “audit committee” is being blatantly misused by Kroll, the mayor and the City Council. If you look at the meaning of the term in the federal Sarbanes-Oxley Act, you find that it does not refer to an outside company. This law only mentions corporations, not government bodies. The law describes an “audit committee” being composed of members of the board of directors.

The American Institute of Certified Public Accountants’ regulations also refer to the same type of audit committee. Despite this, Kroll, with the approval of auditor KPMG, refers to itself as an “audit committee.”

There is a good reason for this.

A Sarbanes-Oxley Tale

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