Internal control framework critical for Sarbanes-Oxley compliance. (Communique).

The Sarbanes-Oxley Act of 2002 has established a new requirement that CEOs and CFOs explicitly evaluate and report to the public on the effectiveness of internal controls over financial reporting.

To assist companies' compliance, PricewaterhouseCoopers is offering the following guideiines:

* Executives should implement a framework for internal control to establish and evaluate controls across an organization to build public trust.

* The key players in the financial reporting supply chain-executives, boards of directors and independent auditors-must work together, with critical cross-checks, to achieve a similar goal.

* Companies have no choice as to whether to put effective controls in place; therefore, decisions must be made about how to best achieve compliance and create a culture of accountability that supports it, now and in the future.

* Companies should create a Spirit of Transparency, cultivate a Culture of Accountability and employ People of Integrity.

* When evaluating its internal controls and procedures, companies may find it useful to apply an internal controls maturity framework to determine whether existing or proposed controls for a given activity are rigorous enough to manage related risks and sufficiently documented for subsequent internal and external review.