SARBANES-OXLEY
OVERVIEW
In July 2002, the United States Congress passed the Sarbanes-Oxley Act ("S-Ox") into law. The Sarbanes-Oxley Act was primarily designed to restore investor confidence following well-publicized bankruptcies that brought chief executives, audit committees, and the independent auditors under heavy scrutiny. The Act is applicable to all publicly registered companies under the jurisdiction of the Securities and Exchange Commission (SEC).
Section 404 of the Sarbanes-Oxley Act, Management Assessment Of Internal Controls, draws attention to the significant processes that feed and comprise the financial reporting for an organization. In order for management to make its annual assertion on the effectiveness of its internal control, management is required to document and evaluate all controls that are deemed significant to the financial reporting process.
MANAGING WORKLOAD
Initially, most organizations try to absorb S-Ox compliance internally. For larger organizations, this approach may be feasible however for smaller companies this approach can divert resources away from running the business. Salerno & Associates provides guidance to companies faced with complying with the requirements of the Sarbanes-Oxley Act with a concentration on Section 404.
VALUE ADDED SARBANES-OXLEY PROGRAM
If approached with the right strategy, becoming S-Ox compliant can become a process improvement, training, and best practice bench marking exercise for an organization. With this approach, an organization can become more efficient through reduced training time for job rotations and new hires, streamlined and consistent processes, and best practice implementation. All this is possible with the right implementation approach.
COST CONTAINMENT
Sarbanes-Oxley Compliance is not one size fits all. Smaller, less complex organizations do not always require the same amount of resources as a larger more complex organization to be S-Ox compliant. Please contact us for a free, no obligation, consultation @ info@salernoassociates.com.
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