April 5, 2010

Corporate Governance Transition – Sarbanes-Oxley Readiness

By Steve Hobbs, Protiviti

There is much more to SOX than simply testing a company’s internal control over financial reporting. Companies entering public markets must have the proper board composition, evaluate the need for an internal audit function (required by the New York Stock Exchange), and have the requisite corporate policies and procedures. They also must be prepared to provide quarterly executive certifications, and eventually, management’s conclusion on the internal control over financial reporting. This compliance effort can be costly, but does not have to be if organizations proactively focus on implanting a sustainable process.