Sarbanes-Oxley 404

What is 404 and how can PPS and their network of advisors assist you?

Overview

Under the Sarbanes-Oxley Act of 2002, certain publicly traded companies are required to complete two separate certifications. Section 302 of the aforementioned Act mandates a set of internal procedures designed to ensure accurate financial disclosure. Under Section 404 (SOX 404) management is required to produce an "internal control report" as part of each annual Exchange Act report. The report must affirm "the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting." The report must also "contain an assessment, as of the end of the most recent fiscal year of the company, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting."

PPS network of professionals have the required working knowledge to assist your company's management in its assessment of the effectiveness of internal control over financial reporting under SOX 404. We are here to facilitate your implementation of SOX 404 requirements and assist in your on-going efforts to ensure appropriate compliance.

 Key Benefits

PPS' SOX 404 services  help you produce outcomes that:

• Facilitate efficient assessment of the effectiveness of internal control over financial reporting using suitable criteria such as the COSO framework.
• Promote sustainable compliance with SOX 404 internal control reporting requirements.
• Establish effective fraud prevention and detection programs.
• Enhance value by streamlining your procedures for SOX 4o4 and 302.
• Mitigate strategic, operational, financial reporting and compliance risks.
• Implement corporate governance best practices.

 Capabilities

Whether you are implementing SOX 404 requirement or ensuring a sustainable compliance process, we can provide you with services that you need. Our SOX 404 services include:

• Project Management
• Documentation:

• Assess risk of material misstatement
• Identify significant processes, amounts and disclosures, and transactions (from initiation to reporting); relevant financial statement assertions; service organizations; and design of controls.
• Determine key controls and locations or business components to be included in assessment.
• Evaluate the design effectiveness of controls and recommend appropriate Action Plans  for design deficiencies.

• Testing

• Determine the nature, timing, and extent of test procedures.
• Perform test procedures and document performance and results.
• Assess significant service organizations (SAS 70 Type II reports, applicability of alternative procedures).
• Evaluate exceptions, nature and cause of deviations, types of financial statements misstatements.
• Recommend appropriate Action Plans for operating deficiencies.

• Remediation

• Evaluate significance of internal control deficiencies/gaps (inconsequential exceptions,  significant deficiencies, material weaknesses).
• Assist process owners in implementation of corrective actions.