There's no doubt that the Sarbanes-Oxley Act (SOX) has transformed the business environment, requiring virtually all public companies to comply. But, it's also having an impact on nonpublic companies. Proactive private companies and not-for-profits are targeting selected compliance areas and performing cost-benefit analyses to strengthen their boards and add key internal controls.

While management has always been responsible for external reporting, the new requirements formalize the responsibility of management and boards. They are now personally accountable for the controls over the financial reporting and regulatory compliance processes and for permeating the entity with ethics through their "tone at the top."

Compliance reduces your organization's reputational risk and exposure to fines and penalties. Besides enabling the audit committees and management of public companies to meet fiduciary responsibilities, implementing strong internal controls can favorably impact your relationship with third parties. Consider these business situations:

• Bankers setting loan conditions
• Vendors seeking partnerships
• Insurance companies underwriting director and officer policies
• Investors buying stocks and options
• Benefactors disbursing funds
• Donors pledging support
• Candidates considering board membership
• Government agencies awarding grants

Working with your management executives, WS+B GA will:

• Guide you in defining your corporate governance needs
• Adopt an integrated finance and IT approach
• Apply an extensive knowledge of internal controls
• Utilize the COSO* framework and appropriate tools
• Propose actions and tools to implement board due diligence/fiduciary responsibility
• Propose manual, system and process efficiencies
• Produce documentation and deliverables for long-term use

WS+B GA's depth and breadth of expertise in auditing, accounting and process improvement make us valuable partners to management on the road to compliance. Our depth of experience includes operations control reviews to sophisticated audit compliance, while our breadth of experience includes a variety of industries - from health care to construction, from law firms to manufacturers, from high-tech companies to service organizations.

Disclosure and Transparency
We can help your management team establish viable avenues for ongoing, timely communication with:

• Board of Directors or Board of Trustees
• Audit Committee
• Investors
• Employees and other interested parties

Ongoing Accountability
Top management of public companies must produce and personally certify quarterly and annual financial reports and the effectiveness of the internal controls. WS+B GA can assist you to regularly monitor and, as needed, modify your internal controls and processes.

Building a Culture of Compliance
In order to develop and maintain a culture of compliance and integrity, proper corporate governance must be at the core of your organization. WS+B GA can help you comply with technical improvements - whether you choose to or are required to implement them - enabling you to instill in your organization the spirit of Sarbanes-Oxley.

*Committee of Sponsoring Organizations of the Treadway Commission

For more information about WS+B GA's project support for corporate governance, risk assessment and Sarbanes-Oxley compliance, and other internal audit related services, see www.wsbga.com.

Contact:

WS+B GA
Tom Basilo
tbasilo@withum.com

Ray Broek
rbroek@withum.com