EVEREST FINANCIAL GROUP

Interim Financial Services- Getting the Job Done

Internal Control Assessments For Section 404

Internal Control Assessments For Section 404

Everest Financial Group can provide direction and focus in addressing the requirements of Section 404 of the Sarbanes-Oxley Act. Our staff is skilled at internal control assessment with the added perspective of many years of operations and project management experience. We are there to minimize the costs by jump starting the project and driving it to completion. Our involvement can be configured to meet the exact needs of the client, all the time working well with top management and outside auditors. Completing documentation and testing of internal control systems to supplement a company's internal effort is also an effective way to minimize the cost the outside audit.

Everest's Approach:

Most companies desire to complete the Section 404 requirements in the most efficient and cost effective manner while also gaining improvements in internal productivity and improved internal controls. Our approach encourages clients to constantly examine the desired end product ( the section 404 report) and to focus on the essential tasks required to complete the project. Human resources can be drawn from various sources both inside and outside of the company. We stress the importance to the company of using the documentation, assessment and testing activities to train employees and improve controls.

Everest also works closely with the public accounting firm that will be required to sign off on the annual report. Communication of a written approach and assessment plan is critical to the smooth completion of the audit sign off. We help the company assess its software needs to determine if a specialized program is appropriate and cost effective.

Everest can be involved at any level that fits the companies needs and resources. Our role can fall into three categories:

• Managing the entire project and its deliverables
• Assisting in the risk assessment and improvement plans
• Documentation of systems flows
• Testing of internal controls
• Implementing Changes and Monitoring compliance

Getting Started with the Section 404 project

The 404 review is divided into several phases:

1. Planning and Scoping Phase

2. High Level Risk Assessment

3. Documentation and Risk Assessment

4. Testing and Audit procedures

5. Section 404 Reporting and Implementation

Everest Financial Group can be involved in any or all of these phases to complete the project on time.

References

Securities and Exchange Section 404 Final Rules: Management's Reports on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports

http://www.sec.gov/rules/final/33-8238

AICPA Sarbanes-Oxley Act Implementation Central: History and status of the Sarbanes-Oxley Act including the full text of the law

http://www.aicpa.org/sarbanes/index.asp

AICPA COSO Integrated Framework: This landmark report was commissioned by the Committee on Sponsoring Organizations of the Treadway Commission – commonly referred to as COSO. It establishes a common definition of internal control that services the needs of different parties for not only assessing their control systems, but also determining how to improve them.

https://www.cpa2biz.com/CS2000/Products/Product