Sarbanes-Oxley section 404 How To Achieve Compliance

Sarbanes-Oxley section 404 Sarbanes-Oxley section 404 Who Must Comply?

Sarbanes-Oxley section 404 Sarbanes-Oxley section 404 What It Is... Transfers liability and responsibility from the corporate entity to chief officers Criminal prosecution for chief officers violating section 404 is a fine of as much as $5 million and imprisonment for up to 20 years

Sarbanes-Oxley section 404 Measuring the Effectiveness of Internal Controls 1) Management signs-off on policies, processes, people and responsibilities, verifying that systems actually exist and are functioning effectively

Sarbanes-Oxley section 404 Measuring the Effectiveness of Internal Controls 1) Management signs-off on policies, processes, people and responsibilities, verifying that systems actually exist and are functioning effectively 2) An independent auditor assesses and reports on the efficiency of internal controls and procedures

Sarbanes-Oxley section 404 Measuring the Effectiveness of Internal Controls 1) Management signs-off on policies, processes, people and responsibilities, verifying that systems actually exist and are functioning effectively 2) An independent auditor assesses and reports on the efficiency of internal controls and procedures 3) CEO & CFO sign-off on the report that accompanies the 404 filing

Sarbanes-Oxley section 404 Misconceptions “If my controls are deficient I can always fix the problem in the next period.”

Sarbanes-Oxley section 404 Misconceptions “If my controls are deficient I can always fix the problem in the next period.” There's still a great deal of uncertainty over rules and standards

Sarbanes-Oxley section 404 Misconceptions “If my controls are deficient I can always fix the problem in the next period.” There's still a great deal of uncertainty over rules and standards “Sarbanes is my auditor's problem, not mine.”

Sarbanes-Oxley section 404 Misconceptions “If my controls are deficient I can always fix the problem in the next period.” There's still a great deal of uncertainty over rules and standards “Sarbanes is my auditor's problem, not mine.” “We only need to deal with the big picture; our auditors won’t be interested in the details.”

Sarbanes-Oxley section 404 Where the Systems Come In… Every system, process and related control in your organization has some dependence on your IT infrastructure CIO is deeply involved in compliance work

Sarbanes-Oxley section 404 Data governance and data stewardship

Sarbanes-Oxley section 404 Sarbanes-Oxley section 404 When You Must Comply Process, documentation and monitoring was originally required for September 2003, but was delayed till June 2004 Multinationals with a foot in Wall street are required to comply by June 2005

Sarbanes-Oxley section 404 Why COSO Compliance De facto evaluation criteria is COSO framework of internal control to ensure compliance with applicable laws and regulations

Sarbanes-Oxley section 404 Facilitate Certification

Sarbanes-Oxley section 404 Biggest Challenge "The biggest problem complying with corporate governance is that you are diverting your chief executive, and you are diverting your directors, and you are diverting your senior managers, what is it you are diverting them from? Well, you are diverting them from running the company. Keeping up with the stringency expected by stakeholders and the feds while maintaining a focus on the day-to-day challenges." - Thomas d'Aquino, president and chief executive of the Canadian Council of Chief Executives

Sarbanes-Oxley section 404 Team BetaWatch Compliance Process

Sarbanes-Oxley section 404 Benefits

Sarbanes-Oxley section 404 Compliance Building Blocks

Sarbanes-Oxley section 404 Value Proposition BetaWatch is supplemental to your technology audit resources If you don’t have an internal audit function, we help you start Guarantee visibility of objectives, assessments, and corrective activities identified at each organizational level to confidently sign off knowing all levels have conducted appropriate review, assessment, and monitoring of internal controls

Thank You for your time. For more information please call Temi Grafstein mobile visit betawatch.com Sarbanes-Oxley section 404 Team BetaWatch International optimizes your section 404 audit effort