What the JOBS Act Means for SOX Compliance

Posted by Bill Bockwoldton Thu, Apr 05, 2012 @ 06:10 PM
The jobs act created a new category of issuer, called an "Emerging Growth" (ECG) company, in the interest of stimulating equity investment in companies by modifying the regulations surrounding registration, capital-raising activities, and compliance requirements. To qualify for this category, a company must have produced less than 1 billion of revenue in it's prior fiscal year (and must not have sold common equity in a registered offering prior to December 8, 2011). A qualifying company would lose ECG status when one of the following occurs:
  • Five years elapse from the IPO date
  • Company produces more than 1 billion in gross revenue
  • Company issues more than 1 billion in non-convertible debt within a 3-year period
  • Company reaches accelerated-filer status (>$700MM public market float)
As an ECG, a company would be exempt from an external audit of their internal controls over financial reporting (SOX 404(b)) as long as they maintain ECG status. This would be a maximum of 5 years from the IPO date if no other conditions specified above are met before that time.
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Tags: Internal Controls, Pre-IPO, 404, SOX, internal control

Open Offer to Mitt Romney & Newt Gingrich Regarding Sarbanes-Oxley

Posted by Teresa Bockwoldton Sun, Mar 11, 2012 @ 09:47 AM

Open Offer to Mitt Romney & Newt Gingrich: I would pay you each $10,000 to hold a 1 hour publicized debate with me about Sarbanes-Oxley Section 404(a), (b), and (c).

Let's speak seriously about this issue.

 

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Tags: Internal Controls, Sarbanes-Oxley Articles & Information, Announcements, 404, 404 audit, Non-accelerated filer 404(b) information, SOX Basic®, SOX Compliance Made Simple, Wall Street Reform, Sarbanes-Oxley Training, risk management, Sarbanes-Oxley, Internal Control Education

Sarbanes-Oxley Compliance in Latin America - What's the Difference?

Posted by Teresa Bockwoldton Fri, Mar 09, 2012 @ 04:06 PM

We thought we'd share this interesting question:

 From Ignacio (Iggy) F. 

• Can you provide an opinion about SOX and Latin America. I need information for a personal project related to companies listed on the NYSE and what are their main concern of these companies related to corporate governance & SOX. Thanks!! iggy

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Tags: Internal Controls, Sarbanes-Oxley Articles & Information, 404, 404 audit, Sarbanes-Oxley Training, Sarbanes-Oxley, Internal Control Education

Internal Control Alert: House Votes to Block Full Funding for the SEC

Posted by Teresa Bockwoldton Tue, Mar 06, 2012 @ 04:00 PM

From Barney Frank just now....oh, this will be an interesting year! This is still early but the ramifications could affect the Sarbanes-Oxley 404(c) permanent reprieve for non-accelerated filers which could cause a need for external audit to review the internal controls of all public companies...we will keep you posted.

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Tags: Sarbanes-Oxley Articles & Information, 404, Wall Street Reform, SEC

More FREE SAS 70 to SSAE Webinars Added!

Posted by Teresa Bockwoldton Mon, Mar 05, 2012 @ 08:52 AM

Join us for our SSAE 16 Webinar Series

Due to large demand, Vibato has access more dates for our complimentary webinar on how to review your vendors internal control by using their SSAE 16 document (formerly known as SAS 70).

* Title: SAS 70 to SSAE 16: How to Review your Vendors Internal Control Report 
* Presenter: Teresa Bockwoldt, Vibato Co-Founder
* Date: Starting on March 8, 2012 and continuing each week until April 12, 2012
* Time: 12:00PM - 1:00PM PST

* Cost: FREE

Vibato, LLC, a leading provider of internal control solutions, invites you to attend a group-internet-live based seminar. 

At this free event, our internal control experts will discuss and demonstrate ways to review the new SSAE 16 documents (previously called SAS 70) to ensure your company understands the usefulness of this document, how it can impact your organization, when to ask for one, and what to do with it once you have it. 

Who Should Attend? 
CFOs, Controllers, Internal Audit, Compliance Executives, Audit Committee Members, External Auditors, Audit Firm Staff Development Directors, are encouraged to attend. 

 

Attendees will receive our complimentary SSAE 16 Analysis Document as a thank you for attending. 

 

Time will be allocated for Q&A with the presenter at the end of the webinar.

 

Title:

SAS 70 to SSAE 16: How to Review your Vendors Internal Control Report

 

Register for a session now by clicking a date below:

Thu, Mar 8, 2012 12:00 PM - 1:00 PM PDT

Thu, Mar 15, 2012 12:00 PM - 1:00 PM PDT

 

Thu, Mar 22, 2012 12:00 PM - 1:00 PM PDT

 

Thu, Mar 29, 2012 12:00 PM - 1:00 PM PDT

 

Thu, Apr 5, 2012 12:00 PM - 1:00 PM PDT

 

Thu, Apr 12, 2012 12:00 PM - 1:00 PM PDT

Time:

12:00 PM - 1:00 PM PST

 

After registering you will receive a confirmation email containing information about joining the Webinar.

 

System Requirements
PC-based attendees
Required: Windows® 7, Vista, XP or 2003 Server

 

Macintosh®-based attendees
Required: Mac OS® X 10.5 or newer

 

 

Space is limited.
Reserve your Webinar seat now!



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Tags: Internal Controls, Sarbanes-Oxley Articles & Information, Compliance tools, 404, 404 audit, SSAE 16, Sarbanes-Oxley Training, compliance, internal control, SAS 70, Internal Control Education, internal control tips

Free Webinar: SSAE 16: How to Review your Vendors Internal Controls

Posted by Teresa Bockwoldton Sun, Mar 04, 2012 @ 08:04 PM

 

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Tags: Internal Controls, Sarbanes-Oxley Articles & Information, Compliance tools, 404, 404 audit, SSAE 16, Sarbanes-Oxley Training, compliance, internal control, SAS 70, Internal Control Education, internal control tips

Change to Sarbanes-Oxley Section 404 Requirements in 2012 Likely

Posted by Teresa Bockwoldton Wed, Feb 22, 2012 @ 11:14 AM

New legislation is gaining steam that would change the definition of which companies are subjected to an external audit review of their internal controls (e.g., Sarbanes-Oxley Section 404(b)). The bill, called 'H.R.3606 - Reopening American Capital Markets to Emerging Growth Companies Act of 2011,' passed the House by an overwhelming bipartisan vote of 54-1. The bill still has to go through the Senate and then get Presidential approval before it becomes law (you can follow the progress here: http://www.opencongress.org/bill/112-h3606/show). 

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Tags: Internal Controls, Sarbanes-Oxley Articles & Information, 404, SOX, AICPA, 404 audit, audit costs, Non-accelerated filer 404(b) information, Sarbanes-Oxley Training, Sarbanes-Oxley, external auditing, Internal Control Education

Auditors Losing the Right to Audit and What this Means for Your 10Q/K

Posted by Teresa Bockwoldton Fri, Oct 14, 2011 @ 04:36 PM

 Google SAS 104-115 and you will find mostly articles by us (Vibato) discussing the need for auditors to pay special attention to internal controls as part of their audit. Why? Because the AICPA & the PCAOB dictates standards that the auditors must adhere to in order to perform their audits. Parts of these requirements include reviewing your internal controls and this applies to ANY COMPANY THAT IS AUDITED – public, private, non-profit; it doesn’t matter. If you are audited, your auditors must look at your internal controls as part of your audit. If you do not have any documented internal controls then be prepared for a higher audit bill because your auditors will have to go looking for internal controls at your company on your dime year-over-year. Moreover, due to independence issues, they are not allowed to share their work with you to use going forward so they will do this work each year and all you will see for it is a higher bill. Period.

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Tags: PCAOB News & Information, financial risk, Accounting Tip of the Day, 404, audit, AICPA, Controls Testing, 10k, Internal Control Education

SOX 404(a) - It Can Apply To More Than You Think - Part 2

Posted by Bill Bockwoldton Fri, Apr 29, 2011 @ 05:18 PM

In my previous post about SOX 404(a) and non-accelerated filers, I highlighted some of the requirements of the legislation. Below I have outlined a proven approach to dealing with those legislative requirements in a cost-effective, efficient way.

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Tags: Internal Controls, 404, Sarbanes-Oxley

SOX Internal Controls Requirements Studied by SEC

Posted by Nancy Johnsonon Tue, Apr 26, 2011 @ 09:53 AM

The costs and impact of SOX 404(b) -- which requires auditor review of internal controls over financial reporting -- was the subject of an SEC study published on April 22, 2011.

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Tags: Internal Controls, 404, 404 audit, Non-accelerated filer 404(b) information