CIMCON Software - SOX Compliance Solutions

1
CIMCON Software - SOX Compliance Solutions
2
(No Transcript)
3
(No Transcript)
4

• The significance of SOX compliance is monumental,
  especially in an era where corporate
  accountability is a subject of intense public
  scrutiny. Failure to comply can result in
  devastating consequences, both financial and
  reputational.
• For example, in 2007, telecommunications company
  Brocade Communications Systems faced hefty
  penalties due to SOX non-compliance, including a
  7 million fine and the CEO receiving a 21-month
  prison sentence. 
• Financial services giant Bank of America was
  fined 10 million in 2004 for similar reasons.
• These cases underscore the real risks of falling
  afoul of SOX regulations.
• It protects shareholders and the investing public
  from accounting errors and fraudulent practices.
• Compliance enhances corporate transparency,
  enables accurate financial reporting, and fosters
  trust, thereby attracting more investors and
  avoiding the pitfalls that can lead to corporate
  demise.

5
(No Transcript)
6
Overview of an Internal Control Audit

• SOX Section 404 mandates an internal control
  audit that requires company management to assess
  and report on the effectiveness of internal
  controls. An independent auditor, registered with
  the Public Company Accounting Oversight Board
  (PCAOB), must then attest to these disclosures.
• The Board, guided by Sections 103 and 404 of the
  Act, has established the auditing standard "An
  Audit of Internal Control Over Financial
  Reporting Performed in Conjunction with an Audit
  of Financial Statements (Auditing Standard No.
  2).

7

• This standard outlines crucial steps in an audit
  of internal controls
• Plan the audit.
• 2. Test and evaluate design and operating
  effectiveness.
• 3. Communicate findings to the audit committee
  and management.
• 4. Evaluate the sufficiency of testing.
• 5. Evaluate management's assessment process.
• 6. Understand the internal controls.
• 7. Formulate an opinion and issue a report on
  internal controls.

8
Consequences of Non-Compliance

• The risks of failing to meet SOX compliance are
  severe.
• Fines can run into millions of dollars, and
  senior executives could face imprisonment, much
  like the characters in a Wall Street thriller
  gone wrong. In the most extreme cases,
  non-compliance could lead to the dissolution of
  the company itself.

9
(No Transcript)