Sarbanes-Oxley (SOX) Compliance
The bar has been raised
The Sarbanes-Oxley Act (SOX) became effective in 2002 to protect investors by improving the reliability and accuracy of companies’ financial statements. SOX holds corporate executives responsible for establishing, evaluating and monitoring the effectiveness of internal controls over financial reporting. Compliance with SOX requirements is accomplished by designing internal control systems which meet the Committee of Sponsoring Organizations of the Treadway Commission (COSO) guidelines.
An updated version of the COSO internal control framework was released in 2013 to keep pace with increasingly complex and technologically driven business and operating environments. The new, codified version retains the core definition of internal control and the components of an internal control system, but also features additional underlying principles and supporting attributes.
The expectation is greater clarity in the design and development of systems of internal control. Previously existing documentation platforms will require modification to comply with the new framework.
KraftCPAs can assist public companies with SOX compliance by:
- conducting the internal control testing required for management’s assessment of the effectiveness of the control structure and procedures over financial reporting
- designing an internal control test program to be implemented by the company’s internal audit staff
- providing consultation to identify high-risk areas where internal control improvements are needed
- updating existing internal control documentation or assisting your internal staff in developing required documentation
- providing high-level technology and internal audit professionals to augment the company’s internal audit team
- implementing the IT internal audit control testing program on behalf of the client
- working with external or internal auditors to gain efficiencies and cost savings