Sarbanes-Oxley


The Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley") was enacted to restore investor confidence in the financial markets and to enhance the quality of financial reporting. This legislation has created significant challenges for executives, directors, auditors and others to satisfy the requirements in a cost-effective manner, and has two primary objectives:
  • Charges management of public companies with the responsibility of annually assessing the design and operating effectiveness of internal control over financial reporting
  • Requires external auditors to issue a report on the effectiveness of internal control over financial reporting. While Sarbanes-Oxley does not apply to non-public companies, many non-public companies are adopting many of Section 404s provisions as a useful means for improving their business effectiveness and efficiency.

Our experience with emerging growth companies, including ongoing operational compliance, evaluation of internal controls, financial reporting as well as real hands-on experience as CFOs and Controllers makes us the ideal partner for working to fulfill Sarbanes-Oxley requirements. We can assist you in preparing for attestation of internal controls and ongoing compliance as your outsourced independent internal audit function. In this role, we are an extension of the Company, part of your team.

Our approach for Section 404 has five unique phases:

Phase 1 - Scoping and Planning

In the scoping and planning phases, our personnel will assist your Company in developing an overall project plan, including budgets and timelines. In addition, the overall scope of the engagement will be determined, including identification of key business and financial reporting processes and overall risk assessments. We can also provide training to members of your team about Sarbanes-Oxley requirements.

Phase 2 - Documentation

In the documentation phase, we will assist your team, on an as needed basis, on the Company's documentation of the key business and financial reporting processes, related controls, including designation of key controls. Documentation typically takes the form of Company policies, procedure manuals, control matrixes, and flowcharts.

Phase 3 - Review of Documentation

In this phase, our team will perform an independent review of the Companys documentation, perform necessary walkthroughs of key processes and identify any design deficiencies. We will make recommendations specific to your Company, in order to strengthen internal controls and disclosure controls.

Phase 4 - Testing of Key Controls

In this phase, our team will design tests of internal controls for key controls that were designated during the documentation phase and assist your team with any necessary remediation.

Phase 5 - Ongoing Compliance

Once the initial implementation of Section 404 is complete, we will work with your Company as an independent outsourced internal audit function to ensure ongoing compliance on a quarterly and annual basis.

Benefits to Outsourcing Internal Audit:

We believe there are many benefits to your Company for outsourcing your internal audit function to our team, including:
  1. We are a cost-effective solution for addressing the complexities and dynamics of evolving corporate governance.
  2. We have significant experience with Companies like yours, both from an external audit and internal operational view.
  3. We are independent of your Company, and will be able to act objectively and be a trusted advisor.
  4. As a CPAmericas firm, we have access to national and international resources, including national Sarbanes-Oxley resources. This gives us access to best practices and continual improvement through sharing.


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Commission Rulemaking and Reports

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