Sarbanes-Oxley Compliance Services

The Sarbanes-Oxley (SOX) Act of 2002, specifically Section 404, requires the CEO and CFO of a public company to document and assess as of the end of every annual reporting period that they established, maintained, and tested the operating effectiveness of the public company’s internal control over financial reporting (ICFR). The independent auditor of the public company must then provide an opinion on management’s assessment of the public company’s ICFR. The CEO and CFO also have to certify as of the end of each quarterly and annual reporting period that they are responsible for the design and operating effectiveness of ICFR based on Section 302 of the SOX Act.

Public companies establish compliance with the SOX Act by developing a compliance plan that includes the appropriate criteria which ensure that significant financial reporting risks have been identified, assessed and key internal controls put in place to mitigate those risks. The most prominent guideline utilized by public companies is the Internal Control – Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Overall, the process to ensure compliance with the SOX Act requires public companies to have specialized knowledge of the SOX Act requirements, the COSO Framework, and the internal control auditing methodologies followed by the independent auditor.

LBMC’s Sarbanes-Oxley Specialists have extensive knowledge and experience with the SOX Act, Section 404 documentation and testing requirements, the COSO Framework, Generally Accepted Accounting Principles (GAAP) and Public Company Accounting Oversight Board (PCAOB) Auditing Standards (specifically AS 2201). We have been assisting numerous public companies with their SOX Compliance programs; working closely with their independent auditors. No matter if you are mature public company or a company in the process of entering the public market through a traditional public offering (IPO) or a special purpose acquisition company (SPAC). We can help you with your SOX Compliance. Our services can be packaged or selected a-la-carte based on your desired support to include the following:

  • Documentation and Assessment of Compliance with the COSO Framework
  • Risk Assessment Facilitation
  • Documentation of Significant Processes and Systems
  • Financial Reporting Risk and Internal Control Assessment
  • Internal Control Testing and Reporting of Testing Results

Why outsource SOX compliance?

LBMC has a team of SOX Compliance experts and a well-established SOX compliance process that helps companies establish or continue compliance with the SOX Act in an efficient and cost-effective manner. Our resources can be allocated among multiple clients thereby reducing costs and providing significant cost savings to you.

Companies that outsource the SOX compliance process generally meet the following profile:

  • Company is in the process of entering the public market through an IPO or a SPAC and doesn’t have an established framework to manage SOX compliance nor the resources necessary to establish a well-rounded and compliant program.
  • Public company has experienced a significant increase in costs to retain the talent that is needed to manage SOX Compliance and/or unable to leverage the expertise within the organization resulting in underutilization of talent.
  • Public company is unable to attract the talent that is needed to manage SOX Compliance.

LBMC SOX Compliance Services

LBMC specializes in tailored SOX Compliance services, supporting companies through every phase of compliance with an approach that combines efficiency with deep expertise. Our services include:

Documentation and Assessment with the COSO Framework

We assist in documenting and assessing compliance, completing COSO Framework templates, and identifying control gaps. Our services extend to testing entity-level controls, ensuring governance standards meet compliance requirements.

Risk Assessment

Utilizing a top-down, risk-based approach, we identify key financial processes and systems for documentation and testing, focusing efforts on areas critical to financial accuracy and reliability.

Documentation of Significant Processes and Systems

Our team efficiently documents your significant processes and systems, minimizing the typical burdens of extensive interviews and detailed documentation, thus maintaining continuity and efficiency year after year.

Financial Reporting Risk and Internal Control Assessment

We delve into understanding critical processes, assessing inherent risks, and identifying key controls for mitigating risks. This phase includes reporting any control gaps for timely remediation.

Internal Control Testing and Reporting

After identifying key internal controls, we develop and execute testing plans to assess their effectiveness, coordinating closely with financial statement auditors to ensure alignment on testing protocols and outcomes.

Cybersecurity and IT Compliance

Our comprehensive team of IT and financial auditors employs a robust approach to enhancing SOX compliance, integrating best practices from COSO and COBIT frameworks. We focus on addressing IT-related risks and controls to ensure your financial reporting systems are not only secure but also fully compliant with evolving standards. By applying COSO’s broad guidelines for internal control alongside COBIT’s IT-specific recommendations, we ensure a holistic governance framework that supports the integrity and reliability of financial reporting, fortifying your organization against cybersecurity risks and compliance issues.

(Download Case Study)

Remediation Management

Taking a risk-based approach, we help prioritize and address findings efficiently, ensuring compliance while maintaining operational effectiveness.

Continued Engagement and Familiarity

By engaging LBMC year after year, our familiarity with your systems grows, allowing us to offer insights and efficiencies that new teams simply cannot match. This continuity not only enhances SOX compliance but also strengthens our client relationships.

For more information on our comprehensive SOX Compliance services and to see how we can tailor our expertise to your needs, please visit our website or contact us directly.

Executive Team

Link to Paul Sarbanes-Oxley (SOX) Compliance Services

Paul Demastus

Shareholder, Audit and Advisory

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Link to Drew Sarbanes-Oxley (SOX) Compliance Services

Drew Hendrickson

Shareholder & Practice Leader, Cybersecurity

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Link to Jacob Sarbanes-Oxley (SOX) Compliance Services

Jacob Schuetze

Shareholder, Audit and Advisory

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