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• Wednesday, July 18, 2007 12:58 AM

  The GOP is the party of the Iraq war - Trust but verify

  Dear Joan:

  Re: Sarbanes-Oxley applied to Iraq and other National Security Issues

  In response to public financial scandals involving Enron, WorldCom, and other publicly traded firms, the Sarbanes-Oxley Act of 2002 was passed to eliminate the corporate governance and audit practices that lead to manipulation of stock price, but also to help investors regain their confidence that in the future this type of scandal is less likely to happen. Sarbanes-Oxley determined the way in which corporations certify their quarterly and annual financial statements: to insure that they are correct, complete, and to guarantee the internal control over financial data in the firm. It is ironic that in the process of protecting our accumulating wealth in terms of finances, we have not set protection from successful manipulation of our security and heirs.

  Over the years from 911 until our current situation, we have been lead into one disappointment after another by well crafted assertions, analyses, statistical presentation, testimony and public releases which if applied against securities, finance and accounting practices demanded for publicly traded companies by their investors would result in the perpetrators being subject to severe financial penalties and incarceration. As more Americans and Iraqis are killed or wounded and our enemies grow more confident in their jihad against us, it is time to place information that leads to the continued investment of our soldiers and security under a verification requirement no less stringent than our money. “Trust but verify” as Ronald Reagan would direct.

  Sarbanes-Oxley remains one of the most important and demanding reform legislation in recent history. And the dreaded Section 404 of the Act specifically calls for reports to contain an internal control report, which shall:

  • state the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for reporting; and

  • contain an assessment, as of the end of the most recent report, on the effectiveness of the internal control structure and procedures of the issuer for the reporting.

  In addition, auditors are required to verify and attest to the internal controls. Sarbanes-Oxley places certification requirements and responsibility for compliance upon management in the normal schedule of reporting. There is a necessity to incorporate these internal controls throughout the business practices for governance, process, applications and infrastructure. They will become part of management philosophy and operating practices. Once established, they will be continually assessed, adjusted or maintained and above all reviewed and audited. All can be enabled by instituting polling practices familiar to key political party professionals within the RNC, DNC and White House staff.

  How could information critical to our Global War on Terrorism, to our Iraqi occupation, to the defeat of Al Qaeda and to our national security remain treated with any less quality assurance? As the Administration continues to deny Congress participation in the direction and management of the war, it is within the power of the Congress to set the standards for information provided to justify its continued authorizations and supporting appropriations. Let us consider legislation applying these veracity standards to all future assessments on Iraq, Terrorism, Iran and military activities including detention centers and intelligence operations and surveillances

  Let us start with the September assessment and place auditors within the report developers now.

  Sincerely;

  William J. Keller, Jr.

  —Bill Keller Read Bill Keller's other letters
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