Pre-IPO preparation for SOX

Readiness for Compliance – Pre-IPO Services

SOX aims to enhance corporate governance through measures that will strengthen internal checks and balances and also strengthen corporate accountability. However, it is essential to emphasize that Section 404 does not merely require companies to establish and maintain an adequate internal control structure and assess its effectiveness on an annual basis.

For those organizations that have begun the compliance process, it has quickly become apparent that information technology plays a vital role in internal control by supporting the systems, data, and infrastructure components critical to the financial reporting process. The public accounting oversight board, PCAOB believes that IT controls are so important that it issued an auditing standard that discusses the importance of information technology in internal control. In particular, it states:

“The nature and characteristics of a company’s use of information technology in its information system affect the company’s internal control over financial reporting.”

Our Approach

1. 1. Perform a Risk Assessment
   2. Document your processes 
   3. Secure your IT Resources
   4. Test your controls 
   5. Fix control deficiencies 
   6. Validate successful remediation of deficiencies