Sarbanes-Oxley Readiness and Assessments
Making Compliance Easy
The Cadence Group makes preparing and complying with section 404 of the Sarbanes-Oxley Act simple. We successfully implemented SOX compliance at large, multi-national accelerated filers, as well as for dozens of small non-accelerated filers. Our customized approach ensures our clients are compliant with their documentation requirements to evidence their management assessment regarding the effectiveness of internal controls over financial reporting. We also ensure our clients are prepared and ready for external auditors as well as any potential SEC reviews. We offer a flexible model, allowing our clients to use our resources and templates as much, or as little as needed. The following options are available, or we can tailor the project to your needs:
We manage the full SOX effort from scoping the project to performing the final assessment. Along the way, we provide regular project updates and deliverables on the status of the project. The effort is divided into the following five phases:
A successful project requires detailed planning and coordination. These efforts should include the definition of roles and responsibilities as well as the scoping of the relevant risks, accounts, disclosures, processes and locations required for compliance with the Sarbanes-Oxley Act. By applying our experience in this phase, we are able to advise you of industry best practices integral to a successful outcome. We provide seasoned templates and scoping memos to clearly document a risk-based, top-down approach to scoping and planning your 404 project. These templates will help focus management’s effort and the effort of the external auditors on the key financial reporting risks.
During the documentation process, walkthroughs of the processes will be performed and the design of internal controls will be assessed to ensure controls are designed to meet the necessary objectives. Gaps will be identified, recommendations will be made and the documentation will be updated to match the internal control design changes, if any.
Management is required to assess the operational effectiveness of existing controls. Testing will include the creation and execution of test plans for significant controls. We develop effective and efficient test plans to assess the operating effectiveness of your controls. We also provide resources to execute these tests and develop conclusions on the effectiveness of the controls. Because of our independence from management and our credentials, your external auditor should be able to place reliance on our testing and potentially reduce the amount of their substantive testing. We also have an excellent working relationship and reputation with all the 'Big 4' accounting firms, and we encourage you to discuss our capabilities with their local offices and discuss their experience working with our firm.
At the conclusion of the process, management is responsible for assessing the internal controls. Deficiencies are assessed to determine if a resulting control deficiency, significant deficiency or a material weakness exists. We provide guidance in regards to the appropriate framework required to assess identified deficiencies. Our experience in performing attestations will help ensure you are assessing these deficiencies in the appropriate manner. During the documentation process, walkthroughs of the processes will be performed and the design of internal controls will be assessed to ensure controls are designed to meet the necessary objectives. Gaps will be identified, recommendations will be made and the documentation will be updated to match the internal control design changes, if any.
We work alongside your internal audit team or other knowledgeable and available resources to complete the annual assessment. This approach allows for potential cost reduction and the ability to leverage specialized skill sets and our templates.
We project manage the 404 compliance effort. In this capacity, we guide you through the process and provide quality assurance over each phase of the project. This approach will minimize external costs and provide knowledge transfer to your internal resources.
CPAInternal Controls Lead and Co-Founder of The Cadence Group
Member of IIA, AICPA and UACPA
Since co-founding The Cadence Group, Travis has has been a leading force in The Cadence Group becoming the premier provider of SOX compliance services in Utah. His work experience in public accounting includes a wide range of complex accounting issues, including SEC filings and comment letters, debt restructurings, and stock compensation issues. Travis has been involved in the Sarbanes-Oxley attestation for over 25 public clients.