An Ounce of Prevention


Sarbanes-Oxley programs that address both compliance and business objectives can help companies trim the costs of section 404 compliance.

The 404 Institute’s third annual Benchmark Study found that companies with low compliance costs and more effective outcomes reported a:

Higher degree of centralized transaction processing and control.

Higher percentage of automated vs. manual controls, as well as preventive vs. detective controls.

A greater reliance on company-level controls.


The study found that companies that made compliance part of employees’ everyday work benefited from:

The use of fewer full-time resources , with more individuals dedicating less time to compliance.

A broad view of risk , relying more heavily on corporate governance and transactional volume than on factors such as the dollar value of accounts.

Substantive interaction with business owners , by involving compliance teams in the design stage of process changes rather than notifying them after changes have been made.

Strategic use of internal audit , focusing less on direct testing and more on self-assessment, strategic testing and reviewing changes.


Source: The 404 Institute’s “Lessons Learned From Compliance Efforts,” Benchmark Study , 2007, www.404institute.com.

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.