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Sarbanes-Oxley (SOX) Compliance Services

Manage Risk and Build Robust Internal Controls to Reach Effective SOX Compliance

Many public companies — and those intending to go public — know they must comply with the Sarbanes-Oxley Act of 2002 (SOX), but do not fully grasp the costs, complexities, and resources associated with meeting those demands.

Considering the high cost and significant impact of non-compliance, getting your SOX program right is crucial. Internal teams can quickly become overwhelmed by the additional workload that comes along with Sarbanes-Oxley implementation or even continued compliance for tenured companies. Many companies lack resources dedicated to a SOX team, and or the required knowledge base to make informed decisions and address risk appropriately.

Our  Risk & Accounting Advisory  practice has vast experience with SOX compliance and stands ready to help your company get prepared for SOX adoption, assess your internal controls framework and environment, strengthen your SOX program or assist with remediation efforts and plan for the future.

Forward-Looking Accounting, Internal Control, and Governance Services Get You Ready and Keep You Compliant

We specialize in Internal Audit solutions tailored to the unique needs of both large and small publicly traded companies, those preparing for an initial public offering, and private companies merging into an existing public company. We provide Internal Audit services that help you comply with SEC financial reporting and disclosure requirements including SOX Section 404 and U.S. GAAP accounting standards.

Publicly held companies require an experienced and proactive independent advisor to help manage, understand, and prepare for regulatory compliance. We understand public company needs including the delicate balance between growth and control. We help companies manage compliance risk, financial reporting risk, and operational risk to help protect company assets, drive compliance, and increase stakeholder confidence.

Accounting Advisory
We provide on-demand technical and specialized accounting to our clients, ranging from companies moving to GAAP accounting to multinational Fortune 500 clients. We offer solutions on complex accounting including revenue recognition, leases, derivatives, VIE, inventory costing, impairment, debt/equity, consolidation, and financial reporting.

Our Internal Audit services are designed to provide turn-key guidance to SOX compliance

Cherry Bekaert takes a risk-based approach to identify key areas in the internal controls environment by creating customized testing methodologies to meet the needs of a diverse group of clients and industries. We can assist companies no matter the complexity:

SOX 404(b) Compliance
For accelerated and large accelerated filers, we offer a full suite of turn-key SOX services including ICFR planning and scoping, risk assessments, control testing, remediation, external auditor coordination, board reporting, and project management.

Smaller Reporting Companies & 404(a) Compliance
Smaller reporting companies (SRC) are subject to Disclosure controls and procedures under Reg S-K Item 307 and annual assessment of internal controls over financial reporting (ICFR) under Reg S-K Item 308. We have a proven, cost-effective approach to support management’s annual ICFR assessment which includes the use of streamlined risk and internal control diagnostics and jump-start internal control libraries to quickly assess risks and evaluate control maturity to meet 404(a) disclosure requirements.

Internal Audit Co-Sourcing
Co-sourcing services involves collaborating with your internal team to provide supplemental support and experience for tasks such as identifying controls, conducting SOX compliance testing, and addressing control weaknesses. We work with your internal audit departments to help with internal control testing and ensure your SOX compliance program is successful. This arrangement allows for a seamless integration of external resources to enhance your team’s capabilities.

IPO Readiness
Understanding the entity-wide changes anticipated for a private company contemplating entry into the public arena is not a task to be taken lightly. Among the changes are additional financial reporting and internal control requirements, financial statement disclosures, and corporate governance readiness. We can help you with these transformational changes. We help evaluate current governance, risk, and compliance (GRC) capabilities, assist with maturing process and control documentation, identify controls, provide guidance and recommendations on gaps, and design a tailored and appropriate testing plan, to give you piece of mind prior to going public and a practical path forward for SOX compliance.

A Unique Focus for Private Company
The implementation of risk management and internal controls is highly beneficial for private companies. It is crucial for companies to have reliable, precise, and transparent financial and operational data for making informed real-time decisions and reporting accurately.

Let us help you enhance efficiency and streamline the closing process, freeing up valuable resources. Through well-defined processes we deliver value-added solutions focused on financial reporting, data and system integration, governance, budgeting and more.

Cherry Bekaert helps organizations drive forward-thinking solutions to ignite growth, mitigate risk, and meet compliance requirements while harnessing advanced technologies.

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Cherry Bekaert’s Distinguishing Difference

Our team brings a systematic approach to evaluating and improving the effectiveness of risk management, control, and governance processes through customized risk management solutions, industry insights, and methodologies tailored to your company’s objectives.

Internal Audit Staffing

  • Internal Audit Co-Sourcing
  • Internal Audit Outsourcing
  • Internal Audit Staff Augmentation & Support

Sarbanes-Oxley (SOX) Section 404 Compliance

  • Risk assessment, key business process and internal control identifications
  • Control Rationalization and Optimization
  • SOX Compliance Readiness
  • SOX 404(a) Compliance (DCPs and ICFR Assessment)
  • SOX 404(b) Compliance
  • Control Deficiency Remediation

Control Testing & Audit Performance

  • Control Testing (Design and Operating Effectiveness)
  • Audit Performance (Compliance, Financial, Operational,
  • Fraud)
  • IT Audit (ITGC Testing and Advisory, IT Governance)
  • System Implementation Assistance
  • Process Narrative and Flowchart Development

Risk Assessments & Strategy

Accounting Advisory

  • Technical Accounting
  • Events & Transaction Accounting Support
  • IPO Readiness
  • Audit Readiness & Support
  • SEC Reporting & Disclosures
  • Accounting & Financial Statement Conversion & Implementation
  • Accounting Transformation
    • Strategy & Organizational Design
    • Process Optimization
  • Accounting Projects & Solutions
  • Accounting Technology Support (ERP or other Technology)
  • Tactical Accounting & Audit Assistance
  • Staff Augmentation

Tax Planning & Support

Tax Provisions

Sustainability & ESG Services

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Chase Wright

Partner, Accounting Advisory Leader

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Neal W. Beggan

Neal W. Beggan

Partner, Risk & Accounting Advisory Services

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Success Stories and Tailored Solutions

Successfully Right-Sizing System of Internal Control

Challenge:
A medical device company’s system of internal control became cumbersome and over-controlled while budget limitations required a more effective and efficient approach to their control environment. Additionally, the company lacked an internal audit function to drive compliance requirements, resulting in uncertainty over the Board’s confidence in the organization’s internal control structure.

Our Solution:
Cherry Bekaert refined management’s existing controls through rationalization and optimization, while certifying that risks of misstatement were sufficiently and efficiently addressed and not over-controlled. This resulted in a reduction of key controls by over 40%, which lowered compliance costs significantly. Cherry Bekaert also provided a full-service internal audit team that reported to senior management and the Audit Committee. We developed an internal audit plan and provided turn-key and tailored services for ICFR compliance and other audit needs while allowing management to focus on running the business.

Conducting Efficient ICFR Compliance for Smaller Reporting Companies

Challenge:
A smaller reporting Company subject to SOX 404(a) requirements was unsure of their responsibilities for management’s annual assessment of ICFR and lacked a comprehensive understanding of Company risk necessary to properly align its resources and focus on key risk areas.

Our Solution:
Through our proven and cost-effective approach, Cherry Bekaert facilitated risk and internal control self-assessment workshops and diagnostics to quickly assess risk and evaluate control maturity to meet 404(a) disclosure requirements, which allowed the Company to efficiently focus on high-risk areas.

Contact Our SOX Compliance Professionals