Take Control of Internal Controls

Corporate governance is at the top of most business agendas. Sarbanes-Oxley is forcing executives and board members to take a hard look at internal controls and processes that monitor the business.

Sarbanes-Oxley, in an effort to preclude conflict of interest, places several restrictions on registered public accounting firms, including making it unlawful for them to perform non-audit services contemporaneously with the audit.

Section 404 of the law mandates publicly traded companies to:

1. Establish financial controls and processes that are accurately verified and documented as to their effectiveness by an external auditor.

2. Conduct quarterly evaluations of disclosure controls and financial reporting and incorporate them into the annual report.

3. Conduct annual evaluations of internal controls over financial reporting and incorporate them into the annual report.

Section 404 dictates that the mere existence of controls is not sufficient. Companies must measure the adequacy of those controls.

Dugan & Lopatka can help. If your outside auditors have a conflict of interest or you just want an outside CPA firm to review your internal controls, please give us a call.