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Corporate Governance

Quoted Companies - Corporate Governance – Guidance

In USA Sarbanes Oxley (SOX) can imprison Directors who issue false financial statements (including the IT Director for allowing it). In the UK the Financial Services Authority (FSA) issues guidance called the “Combined Code on Corporate Governance 2003”. This is backed up by the “Turnbull Guidance on Internal Control”. This sets out best practice on internal control for UK listed companies, and assists them in applying section C.2 of the Combined Code.

The Combined Code states:
"The board’s role is to provide entrepreneurial leadership of the company within a framework of prudent and effective controls which enables risk to be assessed and managed."

All of this is guidance for Directors and Auditors and failure to follow it will result in fines by the FSA, potential civil action by shareholders and potential criminal court action if fraud is suspected.

ISO 27001 puts in place all the IT Security elements required to comply with the Combined Code, The Turnbull Guidance and Section 404 of Sarbanes Oxley.

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