Tax Risk - SOX 404 ........ RED HAT INC (CIK - 1087423 /SIC - 7370) Warning!

This company Red Hat Inc openly acknowledges its vulnerability to SOX 404 as reported below.

They may not be able to accurately or timely report, identify and reduce fraud, resulting in their financial position being potentially being harmed, causing a negative effect on their share price. They have obviously not heard of the 7 Habitual Tax Mistakes.

Have You?

Here is the link to the report:

http://www.sec.gov/Archives/edgar/data/1087423/000119312508095150/d10k.htm#tx59487_2','RED%20HAT%20INC'

We may be exposed to potential risks if we do not have an effective system of disclosure controls or internal controls or fail on an ongoing basis to properly address Section 404 of the Sarbanes-Oxley Act of 2002.

We must comply, on an on-going basis, with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (“SOX”), including those provisions that establish the requirements for both management and auditors of public companies with respect to reporting on internal control over financial reporting.

We cannot be certain that measures we have taken, and will take, will be sufficient or timely completed to meet the Section 404 requirements on an on-going basis, or that we will be able to implement and maintain adequate disclosure controls and controls over our financial processes and reporting in the future, particularly in light of our rapid growth, international expansion and changes in our products and services, which are expected to result in on-going changes to our control systems and areas of potential risk.

If we fail to maintain an effective system of disclosure controls or internal control over financial reporting, including satisfaction of the requirements of Section 404 of SOX, we may not be able to accurately or timely report on our financial results or adequately identify and reduce fraud.

As a result, the financial position of our business could be harmed; current and potential future shareholders could lose confidence in us and/or our reported financial results, which may cause a negative effect on our trading price; and we could be exposed to litigation or regulatory proceedings, which may be costly or divert management attention.