LBMC Sarbanes-Oxley (SOX) Compliance Services

The Sarbanes-Oxley Act of 2002 holds public companies accountable for maintaining effective internal controls over financial reporting (ICFR). SOX Sections 302 and 404 mandate CEOs and CFOs sign off on the effectiveness and design of the controls; independent auditors provide a third-party view on the controls. Complying with SOX promises accurate, transparent, and responsible financial reporting for public companies.

LBMC customizes SOX compliance services that work for you. Our experienced team works directly with your business to maintain compliance at a fair price. We provide a flexible range of services:

Documentation and Assessment of Compliance with the COSO Framework

The COSO Framework is the foundation of SOX compliance which helps companies establish and assess internal control systems. Our team assists in documenting your processes, ensuring compliance with the COSO Framework, and identifying any control gaps that need remediation. We also handle internal control testing, making sure that all controls are both designed and operating effectively. Risk Assessment Facilitation

LBMC takes a top-down, risk-based approach to SOX compliance. We focus on key financial processes and systems that are most likely to cause problems for your company. Finding these important areas helps us to simplify the documentation and testing procedures while providing effective and targeted efforts.

Financial Reporting Risk and Internal Control Assessment

SOX compliance’s foundation is accurate financial reporting. We ensure that important procedures are properly controlled by carefully assessing your internal controls and financial reporting concerns. Our evaluations point out possible flaws in your internal controls, which allows you to fix them before they become more significant problems.

Internal Control Testing and Reporting

Testing internal controls is a major component of compliance with Sarbanes Oxley. We develop and execute SOX testing plans to evaluate the design and effectiveness of your company’s internal controls. By coordinating with financial statement auditors, we ensure that testing protocols align, which enhances both the quality and efficiency of your audits.

Cybersecurity and IT Compliance

Since IT is becoming more and more important in financial systems, SOX compliance goes beyond simply accounting controls to include cybersecurity. Our staff of IT auditors ensures your IT systems are compliant and secure by combining best practices from the COSO and COBIT systems. This coordinates IT controls with your financial reporting procedures and shields your company from cyberattacks. (Download Case Study)

Remediation Management

Should gaps or shortcomings be found, we help to prioritize and handle them using effective remediation management. Our risk-based strategy makes sure that compliance is kept without stopping your company’s activities. We work closely with you to resolve findings efficiently, maintaining both operational and regulatory compliance.

At LBMC, we understand that SOX compliance can be both time-consuming and complex. That’s why we offer flexible, cost-effective solutions that can be tailored to your company’s specific needs. Outsourcing your SOX compliance to LBMC has some advantages:

• Cost Savings: The team is shared among multiple clients, which helps us to provide fast services at lower rates.

• Specialized Expertise: Our team is knowledgeable in SOX requirements including Section 404 documentation, COSO Framework assessments, and PCAOB standards (such as AS 2201).
• Flexibility: We can assist both established publicly traded companies and those getting ready for public market entry through IPOs or SPACs. Our offerings can be chosen a-la-carte or packaged depending on your need.
• Seamless Auditor Integration: Working closely with your independent auditors helps us to assure alignment on internal control assessments and testing. This reduces the chance for conflicts or delays.
• Long-Term Support: A partnership with LBMC supports your compliance efforts by staying efficient, effective, and up-to-date with changing standards.

Approved in 2002, you have most likely heard of the Sarbanes-Oxley Act (SOX) if you manage a publicly traded company. This U.S. regulation was intended to increase the quality and dependability of company disclosures thereby shielding investors from financial fraud. But just what does a SOX audit consist of, and why is compliance so dependent on it?

A SOX audit ensures that the financial reporting systems and internal controls of your business meet the exacting criteria set by the SOX Act. Should you be wondering, “What is SOX compliance?” or “Who is responsible for SOX compliance?” you are not alone. Particularly for companies negotiating the complexity of financial rules, these are frequent queries.

Understanding the Sarbanes-Oxley Framework

Ensuring public firms keep robust internal controls over financial reporting (ICFR) drives the Sarbanes-Oxley (SOX) Act. At the end of every fiscal year, the CEO and CFO under Section 404 must record and attest to the effectiveness of these controls. But compliance doesn’t stop there. Regular testing and risk assessments are crucial parts of maintaining SOX compliance.

The COSO Framework, a tool for helping businesses create and evaluate their own internal control systems, is the core of SOX compliance. To guarantee continuous compliance, businesses must document important procedures, make risk analyses, and always test their controls.

Who is Responsible for SOX Compliance?

Though team effort is involved in SOX compliance, top management has ultimate responsibility. Under Section 302 and 404 of the SOX Act, the CEO and CFO specifically have to certify the internal controls of the company. But here is where having a dedicated compliance team—or perhaps outsourcing SOX compliance—can really make a difference.

Working with LBMC helps your firm get more than just a compliance consultant—you get a long-term advocate who gets familiar with your business procedures. This continuity enables us to give year-after-year deeper insights and more efficiency, thereby guaranteeing that your SOX compliance program keeps changing and getting better over time.

To arrange a consultation or further information on how LBMC might help with your SOX compliance issues, kindly contact us now.