Sarbanes-Oxley Act

As a result of several high-profile scandals and the subsequent erosion of investor confidence, lawmakers have enacted legislation that has dramatically changed the regulatory environment. Based on our experience as accountants, advisors and executives for large companies subject to SEC oversight, we can assist you in addressing these evolving requirements to ensure compliance with the letter and spirit of the law.

Congress, the SEC, and the newly formed Public Company Accounting Oversight Board have all acknowledged the fact that effective control structures will differ from entity to entity based on a number of factors, including size and complexity. Large multinational companies have a need for highly standardized processes and robust information and communication systems. For smaller companies, informal policies and procedures, including extensive management oversight, can provide a substantial amount of assurance regarding the propriety of periodic financial reports.

With our unique combination of industry, auditing, and advisory experience, we assist our clients in developing highly cost-effective, customized approaches for initial compliance with the Act. But we don’t stop there. We continue to work as your partner in reassessing the need for changes in control structures as your business evolves.

To assist you in your compliance efforts, we offer a broad range of regulatory compliance advisory services, including:

• Assistance in the development of a compliance plan;
• Training personnel regarding the COSO framework, documentation procedures and standards;
• Assistance in the documentation and assessment of existing or proposed control activities;
• Advice regarding potential improvements in control activities;
• Assistance in the documentation and assessment of other COSO elements (risk assessment, control environment, information and communications, and monitoring and feedback);
• Development and initiation of an ongoing testing strategy for key controls;
• Execution of ongoing testing activities;
• Internal audit co-sourcing or outsourcing services to ensure ongoing compliance.

We understand the importance of a successful compliance effort, and accordingly, take the time to listen, understand your business, and develop a customized approach to meeting your needs. The combined experience of our Regulatory Compliance Services team provides us with a unique ability to deliver focused, cost-effective advice on the design, implementation and testing of internal controls under Section 404 of the Act.

Additionally, our roster of professionals includes tax, information technology and accounting and audit experts necessary for a comprehensive compliance effort. We have provided regulatory compliance services or internal control assessments for public companies ranging in size from $10 million to $4 billion in annual revenues, in the high technology, pharmaceutical, manufacturing, financial services, and investment advisory industries. This breadth of experience allows us to provide unparalleled advice to ensure highly effective compliance initiatives.

For more information, contact Chris Meshginpoosh at 215-441-4600 or cmeshginpoosh@kmco.com.