SOX Compliance? Or greater efficiency?
For many companies considering an IPO, achieving Sarbanes-Oxley Section 404 (SOX 404) compliance presents a daunting challenge, particularly during the initial year of compliance. For those organisations that have managed compliance since 2004, the process has become routine and viewed entirely as a compliance exercise with little strategic or operational benefit.
When implemented correctly, however, SOX can improve processes, reduce the risk of fraud, and maximise business resources. Manually burdensome processes, outdated processes, and unnecessary review procedures can all be identified and assessed during the risk assessment and control design phases of a project, resulting in increased efficiency and effectiveness throughout many aspects of the business.
BDO’s dedicated Risk Advisory professionals have helped clients across the globe redirect and develop their SOX compliance procedures and controls. With an extensive network of resources and deep experience across virtually all industry sectors, we assist companies both large and small, and also work with non-public entities in achieving SOX-like compliance.
We have deep experience of assisting clients through all stages of SOX implementation from the initial scoping of the project to identify areas and processes that would fall within the project to intelligent design of improvements to those processes and controls to enable SOX compliance to be achieved in the most efficient manner practicable. We take a pragmatic view of the ways in which system objectives can be achieved, recognising that for many companies, achieving an ideal solution may require a multi-step approach, with early years’ compliance requiring possible investigation of compensating controls, initial implementation of manual controls only later followed by more efficiently designed and possibly automated control environments.
Our professionals provide the value-added capabilities to design the internal control financial systems following the existing legislation. Additionally, the proximity to the client with their daily work through effective, open and regular communication has allowed the prioritisation of objectives, calendars and assignment of responsibilities focusing at all times on our clients’ needs.