By Massood Oroomchi and Alec Moore
While Canadian companies are struggling with the cost side of the 52-111 exercise, Alec Moore of the FinEx Group urges them to also consider how to leverage the potential benefits of the certification process.
This is particularly relevant to new companies considering IPOs and the cost/benefits of going public.
also encourages companies to link the timing of their compliance effort with ongoing or upcoming initiatives to minimize costly rework.
says, for example, "If a company has decided to purchase a new financial system, significant effort would be required to understand and map existing processes and system requirements.
The design and implementation of this work should be done in conjunction with Sarbanes-Oxley compliance work.
This will maximize the cost effectiveness of the combined initiatives and eliminate potential re-work."
Although most of the information now available surrounding SOX 404 compliance relates to costs of the documentation process (FEI US 2005, FEI Canada 2005), it is clear that we are beginning to see tangible evidence to suggest that SOX 404, and hence, 52-111, may not only be an evil pill derailing business strategy, but in fact may have real benefits, if managed in the proper way.
Massood Oroomchi and Alec Moore
are the founding partners of FinEx Group
providing leadership, execution and training for both public and private firms in Sarbanes-Oxley/Bill 198 compliance.
For further information, please fill out our contact form or contact Massood Oroomchi at (519) 574-8691 or Alec Moore
at (519) 580-3690.
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For more information call our Exective Partners Massood Oroomchi 519.574.8691 or Alec Moore