1. Title Slide www.ProWorksInfo.com

2. ProWorks for Sarbanes-Oxley (SOX) Compliance

3. Introduced as a result of corporate failures such as Enron, Tyco, WorldCom….. to restore investor confidence in companies Sarbanes Oxley Act of 2002

4. SOX Key Requirements Corporate Management Must Certify: Internal Controls: –Exist –Are Periodically Tested Deficiencies are Disclosed Control Changes Reported; and Financial Statements are Accurate

5. SOX Key Requirement Annual report (10K) must contain a report from management on internal controls

6. Definition of Internal Control Process effected by a company’s board of directors, management and other personnel that drives business success in three categories: –Reliability of financial reporting –Effectiveness and efficiency of operations –Compliance with laws and regulations Efficiency & Effectiveness of Operations Reliability of FinancialReporting Compliance with Laws / Regulations

7. Control Self Assessment Your Role: –Design: Effectiveness of controls –Operation: How the control was applied

8. What Does Your Company Need? A documented internal control structure that includes all relevant policies, procedures and operating principles A structure that is: –robust –designed to be kept current and cost effective

9. What Does Your Company Need? An infrastructure that: –Facilitates management’s confidence –Supports monitoring the completion of applicable control procedures on a real-time basis –Can be tested

10. Layers of Testing Self Assessment Done locally Management Assertion As instructed by Headquarters/Parent Company External Auditor Attestation ProWorks can help with all 3 layers of testing!

11. How ProWorks can help –What is it / What can it do Initially developed for Manufacturing Process Control & Maintenance Can be leveraged for Accounting Process Control to meet SOX testing requirements

12. SOX & ProWorks 1.Work Instruction 2.Evidence of Control 3.Evidence of Management Review

13. SOX Company’s Policies/Procedures and Processes ProWorks *Created: One time for all sites Site A * Site B * Site C *

14. An Example of a Company’s Key Processes Accounts Receivable/Revenue Consolidation/Financial Reporting Inventory/PurchasingDebt/Treasury Fixed AssetsInsurance Cash Management Long- Lived Assets – Goodwill Intangibles, etc. Information TechnologyHR – Payroll/Benefits Taxes – Deferred/Provision Acquisitions and Dispositions

15. Step 1: Define Controls Step 2: Develop control testing Step 3: Develop procedures

16. Step 4 : Setting it up in ProWorks Begin by Developing Universal Templates

17. Create Universal Steps to Document & Test Compliance Step 4 : Setting it up in ProWorks

18. Develop (or Revise) Tests Unique to the Business Unit

19. Step 4 : Setting it up in ProWorks Assign Tasks to specific staff members

20. Step 4 : Setting it up in ProWorks Approve and Release Templates

21. Step 5: Perform test in ProWorks Step 6: Management review