§7241 Corporate responsibility for financial reports

Summary

Requires every company that files periodic reports under section 78m(a) or 78o(d) to have its principal executive officer(s) and principal financial officer(s), or people who do the same jobs, sign and certify each annual and quarterly report. The officers must say they reviewed the report; that, to their knowledge, it has no false or missing important facts; and that the financial statements fairly show the company’s financial condition and results for the periods shown. They must say they are responsible for internal controls, designed those controls to surface material information, tested the controls and reported their conclusions based on an evaluation done within 90 days before the report, told auditors and the audit committee about major control problems or material weaknesses and any fraud by key employees, and noted any significant changes or fixes after their evaluation. A company cannot reduce the legal effect of this certification by moving its legal home or offices outside the United States. The required rules had to take effect no later than 30 days after July 30, 2002.