Sarbanes Oxley and Financial Reporting Controls
Shareholders benefit when companies have effective internal control over financial reporting. In the United States, the share prices of companies reporting under Sarbanes-Oxley requirements do not perform as well when they report that their internal financial reporting controls are ineffective or have received an adverse opinion from their auditors.
Whether a company is experienced with compliance, ParMan Consulting helps it apply a top-down, risk-based approach, in accordance with the SEC's interpretive guidance, to implement a cost-effective process that meets Section 404 demands. We help our clients rationalize the critical risks, identify the key controls, develop a credible body of evidence supporting controls design and operating effectiveness, drive accountability for compliance throughout the organization, and coordinate the optimization of the attestation process under Auditing Standard No. 5.
Under Section 404, a public company must file an internal control report with the annual report asserting whether its internal control over financial reporting provides reasonable assurance of the reliability of its financial reporting process. To achieve this outcome, businesses need a cost-effective, top-down, risk-based approach to minimize non-value-added activity and maximize the effectiveness of the resources you deploy.
ParMan Consulting's services are based on experience gained by our Consultants who have been working with hundreds of clients who share Sarbanes-Oxley concerns and anxieties. Our methodology provides a process-based solution to help clients get organized, set the foundation, document processes and controls, and evaluate whether those processes and controls are achieving the intended results and performing effectively. Our thought leadership, methodologies and suite of technology solutions, combined with our competencies in processes, risks and controls, help companies comply successfully.
Creating a sustainable and cost-effective compliance process
After filing its first internal control report, a business has significant opportunities to improve the sustainability of internal control structure and increase the cost-effectiveness of the compliance process. To manage the transition from project to process, firms need an ongoing infrastructure that leverages first-year learning, institutionalizes the compliance approach, meets audit committee expectations and mines the data for value-added opportunities and migration to a faster, more efficient close.
ParMan Consulting has many product offerings to assist clients in the transition to an ongoing process. We begin by focusing on immediate priorities, including a prior-year debriefing to identify lessons learned and determine near-term strategies for quarterly certifications, monitoring change, testing controls, executing remediation plans and addressing change management issues. We help organizations think longer-term, make the right choices and create value as sustainability improves. Our flexible and comprehensive approach is driven by a customized roadmap that addresses each client's immediate priorities, planned improvements, longer-term strategic improvements and designated timetable.
SOx 404 resourcing
ParMan Consulting can provide our clients with Sarbanes-Oxley experts to conduct the following activities:
- Set up of the required SOx 404 and SOx 302 documentation
- Scoping and Planning of the documentation review process
- Ad-Hoc Controls Design, Effectiveness Review and Remediation
- Quality review of the SOx 404 documentation
- Support in selection and implementation of the GRC applications