SOXexchange

KPMG: Risk Management Tops Audit Committee Agendas

I thought this study was noteworthy.

SEC and PCAOB Guidance Aids SOX Compliance

Well...the results are out, AS5 has helped companies rebalance their work according to this article.  We have definitely seen the improvements for our clients.

SOX ROX

For years now, I have been looking for a SOX tool that gives me visibility, easy reporting, data security, is cost effective, is scalable, and doesn't require an IT dept to support.  There are SOX tools out there, but they have their limitations or you pay $50K for the license and $100K to implement it.  For our clients, that's not an option.

I have hired people to build a tool in Access. That didn't scale. I have hired people to build a tool with Apache/mySQL/whatever-other-open-source-code.  That didn't work.

I was desperate and decided to build a tool using the Salesforce.com platform. I've tested the tool with CNET and noticed at least a 10% decrease in hours.  I attribute the decrease to better workflow management and no rework due to version control issues.  The workpapers also look so much more organized and consistent compared to when we used Excel.  Better access control. 

I'm really proud of our efforts, considering I don't have a software development background and taught myself to build the tool using Salesforce.com for Dummies.  The next stage is to launch this baby.

SOX Compliance Cost $1.7M, Audit Fees $3.6M in 2007

Here's the latest results of the FEI survey...the companies surveyed are large companies, so your circumstances will differ.  The good news is SOX 404 costs are going down.  The bad news is auditor billing rates are going up which offset the savings.

Investors Oppose SOX Reform

Two-thirds of investors would be concerned about any easing of Sarbanes-Oxley rules, according to a national survey by the Center for Audit Quality, released in conjunction with the five-year anniversary of the legislation.

SEC, PCAOB Pushed to Define Materiality

There is a push to define materiality, which I think will be helpful for all of us.  However, I think it will be a difficult task because there are so many combinations of situations to address that it will take the SEC a long time to get there.

Survey: Fraud Is Up, Despite SOX

This article caught my eye. 

This Headline Scares Me-Bookkeeper Sentenced to 4 Years for Embezzlement

OK, I was really busy, but reading this headline scared me.  It made me think whether this could happen to one of my clients without me knowing about it.

10 Threats to SOX Compliance for Smaller Public Companies

This article might be helpful for smaller public companies...

To help CFOs of smaller companies navigate wisely through the Sarbanes-Oxley compliance process, Lord & Benoit has published a study, "10 Threats to SOX Compliance for Smaller Public Companies."

In summarizing the results, Lord & Benoit suggests this list should be used by CFOs as a starting point for a macro-level risk assessment at smaller public companies. Identifying potential concerns, developing action plans to remediate these risks, and taking quick action can minimize the likelihood of an adverse Section 404 report at the end of the first year of compliance.

The Lord & Benoit study reveals that the first year of SOX compliance may be particularly challenging for smaller public companies as they transition from entrepreneurial to corporate growth. The top 10 threats to SOX compliance for smaller public companies appear to be:

(1) accounting and disclosure controls; (2) treasury; (3) competency and training of accounting personnel; (4) control environment; (5) design of controls or lack of effective compensating controls; (6) revenue recognition; (7) financial closing process; (8) inadequate account reconciliations; (9) information technology; and (10) consolidations, mergers, and intercompany accounts.

SEC: SOX Guidance Yes, Extension No

The SEC has decided not to extend the deadline of SOX 404 compliance for companies with less than $75 million in market capitalization.