Sarbanes-Oxley Services (404)

The first group of Public companies known as accelerated filers are currently implemented the requirements of the Sarbanes-Oxley legislation and the Public Company Accounting Oversight Board. Beginning in 2007 (for calendar year end public companies), management of non-accelerated filers will need to begin making assessments of their company’s internal control over financial reporting and in 2008 undergo an integrated audit of such controls along with the financial statements.

Q Has your company properly evaluated the size, internal effort and cost of achieving compliance?
A For companies in your group, a Financial Executive Survey of CFOs estimated between 1,000 and    2,000 internal/external hours to complete the project. Because of its size, taking on this initiative    solely with internal resources can be very disruptive to your company’s operations.

Q Does your company have the internal resources available to manage this process?
A If not, starting early to plan the process has proven to be the best way to proceed. The old    saying: “He who hesitates is lost” has proven to be true for many of the accelerated filers who    waited too late to commence this process. As a result of procrastination, many accelerated filers    made compliance with Sarbanes-Oxley more painful and costly than it needed to be.

Q Are you aware that a pervasive “material weakness” could yield an adverse internal
   control report?
A An adverse report could lead to negative press and stock price pressures.

Q What will be the extent and timing of your external auditor’s involvement?
A Companies will need to understand the needs, scope and methodologies of their external auditors; however; the external auditors are restricted from sharing this knowledge.

Q What can your company do to bridge this gap?
A Squar Milner’s dedicated professionals and CPAs serving on Section 404 assignments possess both    audit expertise and consulting backgrounds. As a result, we can better fill the gap between your    external auditors and you.

Squar Milner’s audit background comes from extensive experience documenting and testing internal controls because we serve as auditors for over 20 public reporting companies. This experience has been recently enhanced as our partners are now involved with accelerated filer companies in Section 404 assignments and understand what needs to be done to achieve compliance. Squar Milner knows how to achieve compliance with Sarbanes-Oxley Section 404.

For more information, please contact:
Newport Beach
Ernest Miranda