| Todd McMullen of Moore Colson Comments on
Sarbanes-Oxley
"In 2003 all public companies will face Sarbanes-Oxley compliance
requirements. While those requirements are evolving, we partner with
CEO's and CFO's to provide value and insight into these complex
issues."
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To Learn More about Moore ColsonÕs Sarbanes-Oxley
Consulting Experience and Expertise, Contact
Us. |
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Ahead of the Curve - A Company's Approach
to Sarbanes-Oxley
Situation:
With its
3rd quarter filing requirements looming, the management of a $3
billion public company desired to take on what all public companies will
face in 2003; assessing its financial reporting internal controls and
developing a consistent reporting system to enable management
certifications, which can be easily updated. Given that financial
information systems design and development is a precluded service offering
by the companyÕs independent accounting firm under Sarbanes-Oxley, the
company needed expert guidance to assist them in this endeavor.
Moore Colson delivers.
Action:
Moore Colson met with
financial management, internal audit and the companyÕs independent
accounting firm to develop an implementation plan. Using the COSO
internal control assessment model, the Sarbanes-Oxley Act and SEC
regulations as its guidelines, internal control components were assessed,
documented, tested and evaluated as to their overall effectiveness.
Reporting tools were developed for
presentation to the Audit Committee and the CEO and CFO. Test
results and evaluations were linked by these reporting tools into the
certifications required of the CEO and CFO to the SEC in its 10-Q.
Result:
As a result of creating
these systems, the company will be able to use its own resources to assess
its financial reporting internal controls for future quarterly and annual
files on a consistent basis. The assessment and reporting systems created
built a foundation for the anticipated requirements of Section 404 of the
Act, thus placing the company out in front on the ÒSarbanes-Oxley learning
curveÓ. Yet most importantly, the CEO, CFO and the Audit Committee
were able to confidently assess financial reporting internal controls
based upon the recommendations and conclusions reached.
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