SEC Accountants provides CPA and technical services relating to Sarbanes-Oxley compliance and disclosure. The Sarbanes-Oxley Act of 2002 is legislation that affects corporate governance, disclosure and financial accounting.
Sections 302 and 404 require CEO’s, CFO’s and independent auditors and committees to:
Certify the accuracy of financial statements and disclosures.
Indicate in each periodic report whether or not there were significant changes in internal controls or related factors since their most recent evaluation and disclose all deficiencies in the design or operation of internal controls.
Provide auditor’s attestation to, and report on, management’s assessment of the internal controls and procedures for financial reporting.
Report that controls and procedures for financial reporting and disclosure have been evaluated for effectiveness quarterly. Further, Section 404 requires an annual evaluation of internal controls and procedures for financial reporting. Under this rule, a corporation must document its existing controls relating to financial reporting, test them, and report on gaps and deficiencies. Furthermore, the company’s independent auditor must issue a report, to be included in the company’s annual report, that attests to management’s assertion on the effectiveness of internal controls, procedures, and financial reporting.
Section 404 requires management to:
Utilize a Framework: Management must identify the framework used to define and evaluate internal controls. The COSO framework is recommended.
Define: Management must formally define and document internal controls.
Monitor: Management must monitor controls on an ongoing basis to ensure that they are in place and are being followed.
Evaluate: Management must evaluate its internal controls annually to provide the basis for its assertion made to outside auditors.
Report: If problems are found with controls in use, during management's evaluation or by the auditors, the problem may need to be reported. Reporting requirements are based on the materiality of the problem encountered.
If a control gap or failure is identified, management must repair the problem.
Attestation preparation: It is in a company's best interest to minimize the costs of compliance and attestation. Top quality support for each of the above areas, coupled with deep analytics to keep management well informed, represent a complete solution for Sarbanes-Oxley compliance.
We specialize in helping with Sarbanes-Oxley compliance. Contact us for more information about our consultative solutions and pre-developed documentation.
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