Sarbanes-Oxley

The Sarbanes-Oxley Act of 2002 (The Act) was overwhelmingly passed by Congress and signed into law by President Bush on July 30, 2002 in response to numerous corporate and accounting scandals that are well known. It has proven to have wide ranging implications for corporate governance, particularly in the areas of expanded responsibilities for both management and the Boards of Directors. The Act also addresses auditor independence and conflict of interests. In a word, Sarbanes-Oxley is intended to increase the transparency of corporate governance.

The Act has eleven titles, or sections, and affects corporate governance to a great extent and requires the Securities and Exchange Commission (SEC) to implement rulings to comply with the law. The major provisions of Sarbanes-Oxley include:

• Creation of the Public Company Accounting Oversight Board (PCAOB)
• Establishment of auditor independence standards,
• Establishment of corporate Audit Committee independence
• Requirements for the certification of financial statements by top management
• Requirement for management to annually evaluate the effectiveness of financial controls
• Address conflicts of interest within the securities industry.

Other provisions of this wide ranging act affect many areas of corporate governance, all with the goal to increase investor confidence and to add transparency to corporate financial decision making.

The goal of transparency, coupled with the added oversight responsibilities of corporate management, Boards of Directors, and audit committees, has increased the needs for independent appraisal services. These services are needed in the areas of financial reporting, pricing of stock options (IRS Code Section 409A) and other corporate planning purposes. The mandated auditor independence places a premium on valuation services from a professional, independent appraisal firm.

Enterprise Appraisal Company offers the independence and professionalism required to meet your needs for appraisal services after Sarbanes-Oxley. As an appraisal firm that has specialized in the valuation of industrial and commercial real estate, machinery & equipment, and intangible assets for 37 years, we are in a strong position to offer the valuation services required by many corporate clients, free from any conflict of interest issues referenced in the Act. Our appraisals and business valuations have been used by large and small corporate clients, governmental agencies and financial services providers to meet a wide array of valuation needs.