Beyond Sarbanes-Oxley Compliance

Designed to lead financial managers from initial compliance with the Sarbanes-Oxley Act, through ongoing maintenance and monitoring, Beyond Sarbanes-Oxley Compliance helps readers seize this opportunity to revitalize their business practice, drive greater performance, and transform their finance organization into a key contributor to the business. Focusing on the present and future financial road ahead, Beyond Sarbanes-Oxley Compliance explores how to implement enterprise risk management processes that comply with Sarbanes-Oxley 302/404/409 requirements, ways to build on initial compliance activities that will improve financial management processes and profitability, compliance and quarterly close checklists, timelines, and table summaries to help readers achieve their goals, and much more. PART ONE: INITIAL COMPLIANCE.

1. Sarbanes-Oxley Act Overview.

2. Overview of Sarbanes-Oxley Sections 302, 404, and 409.

3. Determining Organizational Readiness.

4. The "Path" Approach to Compliance.

PART TWO: ONGOING MAINTENANCE AND MONITORING.

5. Change Management.

6. Ongoing Compliance Activities.

7. Audit Function Considerations.

8. Other On-Going Compliance Issues.

PART THREE: BEYOND COMPLIANCE.

9. Process Improvement Considerations.

10. International Financial Reporting Standards.

11. Non US Based Companies and Sarbanes-Oxley Compliance.

12. Financial Services Compliance Initiatives.

Appendix A: Sarbanes-Oxley Section 302.

Appendix B: Sarbanes-Oxley Section 404.

Appendix C: Sarbanes-Oxley Section 409.

Appendix D: Evaluation Questions to Understand the Current State of Control Processes.

Appendix E: Internal Control Over Financial Reporting.

Appendix F: Evaluating Control Deficiencies.

Appendix G: Sample Documentation.

Appendix H: AS2 Control Testing Provisions.

Appendix I: Responsibilities of Internal Auditing.

Appendix J: Actual Internal Control Disclosures.

Index.

“…full of pragmatic advice on achieving and sustaining compliance” (Supply Management, 5th January 2005) ANNE M. MARCHETTI is a practice director for Parson Consulting, a global consulting firm focused on finance, accounting, and business strategy. She is the national leader of their Sarbanes-Oxley practice. Now that most accelerated filers have undergone the greatest initial challenge of the Sarbanes-Oxley Act—Section 404 compliance—what's next? What do you need to know to ensure ongoing monitoring and maintenance of strong systems of internal controls? How can you leverage the knowledge gained through regulatory compliance activities to positively impact the bottom line? What steps do you need to take to assume a proactive, forward-looking role of identifying and mitigating threats beyond basic regulatory compliance?

Written by Anne Marchetti, a practice leader for Sarbanes-Oxley, Beyond Sarbanes-Oxley Compliance guides accounting and finance managers through both the necessary requirements and value-added activities in enterprise risk management in the post-Sarbanes environment. This practical book includes a host of invaluable tools, including ongoing compliance checklists, key internal and external timelines, quarterly close checklists that incorporate SOX 302/404/409 compliance and financial reporting activities, and tables that summarize technology options and alternative approaches. Broken down into three accessible sections—Initial Compliance, Ongoing Maintenance and Monitoring, and Beyond Compliance—coverage includes:

• An overview of the Act provisions for Sections 302, 404, and 409 and suggested action steps necessary to comply with the requirements
• A section that defines and contrasts the terms reportable conditions, material weaknesses, and significant deficiencies and provides practical examples of each
• The responsibilities of the financial manager, after initial compliance with the Act, including quarterly compliance processes, interfacing with both internal audit and registered public auditors, control testing, software considerations, and SAS 70 letters that provide the financial manager with practical applications
• The opportunity to move Sarbanes-Oxley compliance from a routine checklist, and one-time internal controls improvement process, to a defining cultural-change initiative
• How the financial services industry may be affected by the ever-expanding, local and global regulatory, compliance, and reporting requirements
• The implications for future European Union–listed companies with International Financial Reporting Standards (IFRS) in 2005 and the differences that exist between IFRS and U.S. GAAP

Essential reading for controllers, finance managers, CFOs, compliance officers, and project managers in charge of Sarbanes-Oxley compliance, Beyond Sarbanes-Oxley Compliance is written for any financial manager who has a firm grasp on the present and a keen eye on the future.

Praise for Beyond Sarbanes-Oxley Compliance

"Many public company executives have struggled with the practical implications of SOX for both themselves and their businesses. This book demystifies compliance with straightforward advice that serves as a clear road map to building compliance capability, in year one and beyond."
—Francis Aquila, Partner, Sullivan & Cromwell LLP

"Sarbanes-Oxley compliance is an unchartered territory for even an experienced finance executive. Anne Marchetti's book serves as a practical, insightful guide through complex Act requirements, both at initial and ongoing phases. It brings clarity and focus to compliance."
—Mark Kurtz, CAO, Haights Cross Communications

Now that your company has undergone the greatest initial challenge of the Sarbanes-Oxley Act—Section 404 compliance—what's next? Designed to lead financial managers from initial compliance with the Act, through ongoing maintenance and monitoring, Beyond Sarbanes-Oxley Compliance helps you seize this opportunity to revitalize your business practice, drive greater performance, and transform your finance organization into a key contributor to the business.

Focusing on the present and future financial road ahead, Beyond Sarbanes-Oxley Compliance explores:

• How to implement enterprise risk management processes that comply with Sarbanes-Oxley 302/404/409 requirements
• Ways to build on initial compliance activities that will improve financial management processes and profitability
• Compliance and quarterly close checklists, timelines, and table summaries to help you achieve your goals
• And much more