Not only is good governance the law for many companies, but most studies have shown it is also good for business. Rather than being a burden, implementing the most relevant provisions of the Sarbanes-Oxley Act can give even private, not-for-profit, and pre-IPO companies the impetus they need to take a fresh look at improving the cost-effectiveness of their accounting systems, processes, and internal controls—and become more lean and competitive in the process.
Is your organization a:
Private Company?
If you are a business owner or chief financial officer of a private company, you may be less concerned or focused on the governance, risk, and compliance (GRC) aspect of your business than your public company brethren. You may view issues such as internal controls, process improvement, and regulatory initiatives as costs rather than investments. However, as many public companies have learned, you could be missing out on efficiencies that can reap significant benefits for many years to come. Whether you need assistance establishing or updating key accounting policies and procedures or determining whether your company’s internal controls are robust enough to prevent and/or detect potential errors or fraud, our team can help you use the best practices of corporate governance that lead to a tangible return on your investment that is quickly evident.
Pre-IPO?
If, for strategic reasons, you are anticipating an IPO or are looking to be acquired by a public company, the imperative to become “SOX-ready” is absolute. Our GRC professionals have helped many organizations in this situation, as well as those who have registered public debt. We understand that your issues and challenges are uniquely your own. We can take you down the right GRC path at the right time for your organization. Compliance activities can generate substantial benefits—far in excess of the compliance expenditure incurred. These benefits can be in the form of enhanced operational efficiency and productivity, improved decision-making and customer relationships, enhanced cash flow, and reduction in errors and fraud. The investment that you make at this critical juncture could help you lay a very strong foundation to leverage for many years.
Not-for-Profit?
J.H. Cohn has an in-depth understanding of the challenges faced today by not-for-profits. This allows us to propose enterprise-wide risk management solutions related to organizational governance as well as internal control and operational issues linked to both financial and other business processes.
Donors and lenders expect not-for-profit board members, financial executives, and internal auditors to reduce exposure to legal liabilities, decrease risk to reputation, and put in place processes that allow for an efficient use of resources. J.H. Cohn’s GRC team can show you how. And whether your scope is local or global in reach, we can serve as your outsourced internal audit function, having provided this service to several major, multinational not-for-profit organizations.
Best Practices Benefits for Private, Not-for-Profit, and Pre-IPO entities
Applying SOX best practices within an integrated GRC action plan can have many benefits for a non-public entity:
- Enhanced governance procedures
- More strategic and timely decision-making
- Strengthened codes of conduct and ethics
- Documented and improved controls
- Integrated manual and automated processes and controls
- Efficient IT processes
- Reduced fraud risk
- Shared of resources; eliminated redundancies
- Less scrutiny by agencies and less difficulty in attracting funding
- Fewer identified deficiencies made public to trustees, granting agencies, donors, insurers, rating agencies, Federal sponsors, and other internal and external stakeholders
- Intangible benefits affecting culture, brand, and reputation
- Laying a robust foundation by enhancing control awareness across the organization and designing and maintaining relevant controls for the long-term good