The Sarbanes-Oxley Act of 2002 (SOX) made significant changes to many aspects of the financial reporting process for publicly traded companies. One of those changes is a requirement that management provide a report that contains an assessment on the Company’s internal controls over the financial reporting process and that the Company's Auditors provide an attestation to the managements report.
In its press release of December 15, 2006, the Securities and Exchange Commission (SEC) extended the date of compliance so that a non-accelerated filer will provide managements assessment regarding internal control over financial reporting in its annual reports for fiscal years ending on or after December 15, 2007, with the attestation from the Company’s Auditors included on or after December 15, 2008. For Valor Energy, this means that our fiscal year end report of May 31, 2008, will require the report from management, with the attestation from our Auditors required in the May 31, 2009 annual report.
What does this compliance process mean for our Shareholders? Essentially, it provides a report to the public on the effectiveness of the Company’s ability to reasonably ensure the accuracy of its financial reports and identify where certain risks, if any, may exist. We believe that our report will provide that assurance to our Shareholders!
