In the wake of more rigorous governance compliance and increased disclosure requirements, companies can expect the cost of being public to increase by nearly 100 percent, depending on their size. Estimated costs for middle-market companies, some listed at right, include increased accounting and legal fees, according to the law firm of Foley Lardner, which conducted […]
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Posted inFrom the Archive
SEC Votes To Mandate Electronic Filing of Ownership Reports
On April 24, the Securities and Exchange Commission voted to require that reports by insiders disclosing their securities holdings be filed electronically with the SEC. Filing and Posting The Commission voted to mandate the electronic filing of beneficial ownership reports filed by officers, directors and principal security holders under Section 16(a) of the Securities Exchange […]
Posted inInternal Controls
Biggest Barrier to Fixing IC Weakness: Skilled Workforce
ODon’t give me more reports on my control weaknesses — fix them!” That’s increasingly the attitude in some corporations, reacting to ever increasing pressure on internal controls, particularly from Section 302 and Section 404 of the Sarbanes-Oxley Act. When CEOs and CFOs certify their assessments of internal controls effectiveness, the last thing they want is […]
Posted inInternal Controls
Breaking Down Barriers to Monitoring Reports
Sarbanes-Oxley is the buzz within all public companies today as they work towards complying with the new regulations. Even private companies are joining in as a recent survey noted that 58% of private companies are instituting changes to improve their accounting practices in response to the new act. Of particular note are the following sections: […]
Posted inAccounting & Auditing
Changes Afoot For Auditing Standards, Internal Controls
The recent news that the Public Company Accounting Oversight Board has decided to take over responsibility for establishing public company auditing rules marks the end of a 100 year period in which the accounting industry had set its own standards. The Board did have the option of leaving the auditing standard-setting process to the Auditing […]
Posted inInternal Controls
Complying With Internal Controls To Manage Enterprise-Wide Risks Effectively
The overhaul in corporate accountability sparked by the Sarbanes-Oxley Act of 2002 marks the most dramatic and far-reaching reform affecting financial reporting in almost 70 years. When it comes to complying with the new rules on certifications and the issuance of management’s report on internal controls, Section 404 can be seen as an opportunity to […]
Posted inInternal Controls
Internal Controls: More Than Safeguarding Assets
For many companies, the mention of internal controls sets off a passionate discussion of the latest physical inventory or the recent establishment of an asset tracking system. While safeguarding the company’s assets is one element of internal controls, Section 404 of the Sarbanes-Oxley Act of 2002 has brought to the forefront a concept of internal […]
Posted inInternal Controls
The Missing Link In Implementing Effective Internal Controls
Senior executives have long sought ways to better control the enterprises they run and reduce risk. Effective IC promotes efficiency, reduces risk of asset loss, and helps ensure the reliability of financial statements and compliance with laws and regulations. IC enables management to effectively react to rapidly changing economic and competitive environments, and shifting customer […]
Posted inInternal Controls
Sarbanes-Oxley: Ten Tips for Taking (Internal) Control
How do you get the undivided attention of a CFO? Sidle alongside and whisper the words “Sarbanes-Oxley” in his or her ear. No piece of legislation in recent memory has inspired consternation equal to that brought on by The Sarbanes-Oxley Act. This complex law and its associated regulations have executives, directors, and committee members scrambling […]
Posted inInternal Controls
Rules of the Road for Internal Controls Attestations
Even though standards or deadlines are not yet mandated, many companies are spending inordinate amounts of time — or should be — beefing up their internal controls. Much of this activity is at the prodding of the independent auditors, whose attestation fees are often estimated at a level at least as high as the current […]
