Addressing the Challenges
Accelerated filers are evaluating methodologies to leverage the new SEC / PCAOB rules to reduce costs and to transform compliance assets into business improvement. In seeking those solutions some CFOs, Chief Audit Officers and Chief Compliance Officers have used a checklist.
General Characteristics
- Solution or methodology provides an analytical view of SOX information
- Benchmarking against other firms in industry and revenue categories
- Best practice standards are integral and updated
- Information format can structured to improve communication and dialogue between Auditor and Management
Risk And Control Redundancy
- Replaces high frequency controls with compensating low frequency or entity-level controls
- Standardizes controls and testing definitions
- Leverages existing sox spreadsheets, documents or flow charts
- Proven methodology
- Training (on-site and remote) available
- Advisory support (on-site and remote) available
- Integrated top down risk assessment
- Consolidated data of entire ICFR
- Compliance analytics
- Flexible ad-hoc reporting
- Facilitated high participation
- Solution supports natural evolution from a SOX project to a SOX program management approach
- Create an information foundation for identifying, evaluating and prioritizing process improvement and automation opportunities.
The last point is key because the value of the information captured by SOX goes well beyond compliance. It offers a consistent business map showing organizational entities, transaction process flows, application systems, people and their various inter-relationships to financial accounts. This information is helpful in evaluating process improvements, requirements for new applications, HR organizational design and, importantly, risk and performance management needs.
