Project Management – Global SOX 404 Compliance

Industry: Publicly-held Telecommunications

Scope: Sarbanes-Oxley 404 Compliance — Financial and IT Systems Controls

Background: As a result of a spin-off and subsequent IPO, this CTS client needed to demonstrate compliance with SOX 404 requirements. Previously, this company was an operating subsidiary of another larger firm, and did not have in-house expertise.   Moreover, little formal documentation existed to substantiate its internal controls in place.
During the review, some financial data was required to be restated due to a material accounting error.  Due to this added complexity, the level of scrutiny performed by the external auditors was extensive.

CTS Impact Solution: By leveraging the CTS SOX Toolkit, CTS managed the comprehensive SOX program and provided hands-on staff to perform all facets of the review including Financial, IT, and Entity-Level controls.

  • Perform risk assessment based on COSO framework and AS 5
  • Rationalize and document key controls, and underlying business processes
  • Develop test plans and perform testing
  • SAS 70 review of third-party service providers
  • Analysis of deficiencies
  • Remediation planning and oversight
  • Anti-fraud controls review
  • Liaison to Big 4 external auditors
  • Audit Committee updates

Other Services:  Concurrently, this client required assistance with day-to-day accounting activities during peak periods including:

  • SEC reporting
  • Interim Accounting Manager to oversee transaction processing activities

Also, with its expansive network of telecommunications infrastructure, this client leased a high volume of real estate holdings nationwide. To automate the lease administration process, a new Lease Administration System was licensed. CTS Impact assisted with the data conversion and testing during the implementation of the new system.

2017-02-08T23:41:19+00:00