Does your “SOX” Fit? Jonathan Fink, CPA, Partner 1

Transcript:Does your “SOX” Fit? Jonathan Fink, CPA, Partner 1:
Does your “SOX” Fit? Jonathan Fink, CPA, Partner 1 Does your “SOX” Fit?- speaker background Jonathan Fink, CPA Audit partner West Hartford, Connecticut office BlumShapiro works with companies on the management side to assist them in SOX compliance efforts and other internal control objectives BlumShapiro does not audit public companies My SOX experience includes the following industries: Utilities Manufacturing Pharmaceuticals Non-profits 2 Does your “SOX” Fit?- today’s agenda Background on SOX SOX environment Where we were Where we are today Where we might be going Applying SOX to non-registrants 3 Does your “SOX” Fit?- Background on SOX Sarbanes-Oxley Act of 2002 Passed in response to large public company frauds in early 2000’s Intended to toughen the penalties on senior executives at public companies where frauds occur 11 Sections of Act Establishment of Public Company Accounting Oversight Board (PCAOB) Some differences in compliance requirements for large and small public companies 4 Does your “SOX” Fit?- Background on SOX Sarbanes-Oxley Act of 2002- Key Sections Section 302 Quarterly certification by officers Significant changes in internal control during the quarter Certain interim fraud disclosures Section 404 Assessment of effectiveness of internal controls over financial reporting Related report from independent registered accounting firm 5 Does your “SOX” Fit?- Where we were Before we get into the business side, what was going on in popular culture in 2002? 6 Does your “SOX” Fit?- Where we were 2002- popular culture #1 song for the year- How You Remind Me by Nickelback 7 Does your “SOX” Fit?- Where we were 2002- popular culture #1 movie for the year- Spider-Man 8 Does your “SOX” Fit?- Where we were 2002- popular culture #1 TV show- CSI 9 Does your “SOX” Fit?- Where we were 2002- popular culture Trending celebrity stories in 2002 Jennifer Lopez and Ben Affleck The Osbournes show American Idol 10 Does your “SOX” Fit?- Where we were Before the Sarbanes-Oxley Act (SOX), there were few restrictions on the services an auditor could provide to their client Internal audit Systems consulting Accounting assistance Stemming from the high-profile frauds at companies such as Enron, there was a public perception that auditors’ independence was not always maintained and that an auditor might be hesitant to challenge a client on an accounting or reporting issue that could damage their non-audit service revenues Public outcry over lost retirement savings in affected public stocks 11 Does your “SOX” Fit?- Where we were