Ernst & Young to assist China’s Gerui with SOX 404 auditing standards

Tuesday, 13 April 2010 16:40:28 (GMT+2)

Zhengzhou, China-based steel processing company and specialty steel producer China Gerui Advanced Materials Group Limited (Gerui) announced on April 12 that it has engaged Ernst & Young (China) Advisory Limited (Ernst & Young) to assist the company in the implementation of Section 404 of the Sarbanes-Oxley Act of 2002 (SOX 404).

SOX 404 requires the company and its external auditor to report on the effectiveness of the company's internal controls over financial reporting. In addition, Ernst & Young will provide recommendations for the consideration of Gerui's management in terms of any additional controls and procedures which may enhance the risk management capability of the company's internal controls over financial reporting.

Gerui chairman and CEO Mingwang Lu said that the initiative will "enhance shareholder confidence in the company's financial reporting standards, transparency, and reasonableness."

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