SOX Stage Gate Challenges
SOX compliance strains enterprise resources and increases risk given the complexity for project progression visibility, cross-functionality, significant resource dedication and internal audit crowd-out.
Together, this translates into risks of failure at each SOX program stage gate.
As resources become strained, uncertainty grows around precision of execution. Compound that by a lack of knowledge regarding the acceptable standard of documentation, while pressure from all sides muddies the purpose of the control.
SOX requirements are always evolving, requiring manual updates of information in multiple places. This increases the incidence of errors, while version control and version history tracking become a nightmare.
As the PCAOB constantly updates their focus, walkthrough tests will require documentation reworks and test redesigns. Add-in lack of adequate evidence of control execution, client delays, cost overruns, missed internal deadlines, and potential delays.
Accountability becomes an issue, as does gaining and maintaining management consensus as to a remediation plan and timing completion. Miscommunications naturally run rampant between external and internal auditors, management and control owners.
Time to make the switch
Legacy methods and tools simply were not built to handle the rigors of modern SOX compliance. Leverage an automated SOX platform to do the administrative work so you can focus on what really matters – reducing risks to the company.
Toppan Merrill SOX Automation is an intuitive, collaborative SaaS platform that puts you in control, features integrated workflow automation and delivers improved efficiency at every stage.
Streamlining SOX Compliance
For decades, Toppan Merrill has delivered end-to-end solutions to regulatory, internal and external audit professionals that solve the many complications inherent in regulatory and compliance audits.
An end-to-end SOX compliance software that manages the entire process on a single platform, built on SOX rules and business process logic.
A platform built for SOX experts by SOX compliance experts, infusing decades of experience into every stage of the process.
Dedicated consultants available to guide you through SOX compliance while staying ahead of new standards and ever-changing regulations.
On The Dot
Episode 1 – A conversation with Jennifer Froberg, Senior SEC Product Specialist, about the new cybersecurity disclosure requirements for domestic and foreign issuers.
Updates and Insights
“Easy, smooth implementation. We LOVE THE REPORTS we are getting from [Toppan Merrill SOX Automation] for the audit committee, and this saves them a LOT of time. We fully use the 302 certification process as well as control execution.”Manufacturing Industry, Large Accelerated Filer
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The Sarbanes-Oxley Act of 2002, also known as Sarbanes-Oxley, Sarbox or SOX, was passed by Congress to require public companies and their top management to fully disclose their financial and accounting practices and activities. Sarbanes-Oxley, which comprises 11 sections, also contains provisions that address privately held companies.
Major corporate and accounting scandals that shook investor confidence, such as those surrounding Enron and Worldcom, were the impetus for Sarbanes-Oxley. Sponsored by Senator Paul Sarbanes and Representative Michael G. Oxley, SOX requires that senior management certify the accuracy of their company’s financial statement. It also exacts harsh penalties for fraudulent financial activity and increases oversight by the company board of directors. SOX ensures the independence of outside auditors reviewing corporate financial statements.
In addition, the Sarbanes-Oxley Act requires the Securities and Exchange Commission (SEC) to publish rules and regulations as well as deadlines for compliance by public corporations. Since SOX’s passing, the SEC has set up numerous rules to administer Sarbanes-Oxley. It also created the Public Company Accounting Oversight Board (PCAOB) to oversee, inspect and govern accounting firms acting as auditors of the internal control practices of public companies.
Smaller companies with a market cap of less than $75 million are exempt from SOX requirements, according to the Dodd-Frank Act. For support and additional information, explore our automated SOX compliance solution.
Internal control over financial reporting, or commonly referred to as ICFR, is designed to protect and enhance the accuracy and transparency of financial reporting data by public companies. This is prevalent in the Sarbanes-Oxley (SOX) Act, which requires public companies to follow very specific requirements around ICFR to be in compliance with SOX. For support and additional information, explore our automated SOX compliance solution.
The Public Company Accounting Oversight Board (PCAOB) was founded and established in 2002 as a result of the Sarbanes-Oxley (SOX) Act. The PCAOB is a non-profit organization that monitors and governs external audit firms of public companies, and sets standards to improve the reliability of audits and protect investors. Two advisory groups were also formed under the PCAOB; they are the Standing Advisory Group and the Investor Advisory Group. For support and additional information, explore our automated SOX compliance solution.
The COSO (Committee of Sponsoring Organizations of the Treadway Commission) created a framework that companies can adopt to monitor and evaluate their internal controls. The COSO framework includes: Control environment, risk assessment, control activities, information and communication and monitoring. For support and additional information, explore our automated SOX compliance solution.