Trends/Implementation

Access the latest information and resources on emerging trends and issues in financial reporting and corporate governance. Learn how to navigate and implement the controls necessary for your organization to meet the complex issues of 404 compliance.

Seeking SOX Software  |LAUNCH SITE

There have been significant changes to section 404-enabling software. These enhancements have brought the technology debate to the forefront for compliance leaders.

Top Five Strategic Priorities for the Future  |LAUNCH SITE

Top Five Strategic Priorities for the Future.

KPMG 2005 Tax Department Survey  |LAUNCH SITE

KPMG's 2005 Tax Department Survey identifies the critical factors driving tax department performance in the current environment, including Sarbanes-Oxley section 404 compliance and ever-rising demands for accuracy and mitigation of tax-related risks.

Sarbox ABCs for the Rank and File  |LAUNCH SITE

Concerned about compliance costs, companies are training employees in the ins and outs of Sarbox internal-controls rules.

Resources, Ownership And Discipline; Key 404 Lessons   |LAUNCH SITE

Now that most accelerated filers are coming down the homestretch regarding Section 404 of the Sarbanes-Oxley Act, it's worth looking at what companies have experienced, and how they're building on lessons they learned from last year's efforts.

Automation and Sarbanes-Oxley Compliance   |LAUNCH SITE

Companies that look to embed automated controls throughout their cross-enterprise business processes should enjoy the largest long-term benefits.

The Long Tentacles of Compliance   |LAUNCH SITE

Many organizations rely on service providers to conduct transactions and processes that may materially affect their financial statements. That's why it pays to understand how Sarbanes-Oxley compliance affects some external relationships.

Sarbox: Year 2 - The second time around promises more headaches, but some best practices are emerging.   |LAUNCH SITE

First, the good news: Most companies have endured and survived their initial foray into Sarbanes-Oxley. Unfortunately, it appears that year two won't be the autopilot repeat that companies had hoped for.

Conventional IT Management Approaches to Compliance Fall Short.  |LAUNCH SITE

High-profile security incidents and regulations, such as the U.S. Sarbanes-Oxley Act of 2002, are putting a greater focus on how organizations protect critical information technology assets that link to financial and operational data and processes.

Biting the Section 404 Bullet   |LAUNCH SITE

Companies look to invest in technology as they move from manual to automated processes to comply with Sarbanes-Oxley Section 404.

Is Sarbanes-Oxley Compromising Internal Audit?   |LAUNCH SITE

Internal auditors at many companies have been so consumed by the legislation that traditional priorities are falling by the wayside. But some organizations are finding ways to balance the function's ongoing compliance responsibilities with a renewed focus on strategic and operational risks.

Integrating IT Controls and Sarbanes-Oxley   |LAUNCH SITE

Questions regarding the relevance of IT in the scope of section 404 are prevalent as companies wrestle with reporting on internal controls in a post Sarbanes-Oxley environment.

Relief on 404; Filing Schedule in Store for Small Companies   |LAUNCH SITE

Advisors to the Securities and Exchange Commission have recommended regulators lighten up on smaller public companies by delaying internal control reporting requirements, and by scrapping or postponing accelerating filing deadlines.

From Deficiencies to Weaknesses   |LAUNCH SITE

When does a significant deficiency become a material weakness?

Spreadsheet Blues: few Controls Yield Many Weaknesses   |LAUNCH SITE

Spreadsheets fall short of satisfying the requirements of the Sarbanes-Oxley Act.

KPMG LLP's The Compliance Journey: Making Compliance Sustainable  |DOWNLOAD PDF

KPMG's newly published white paper, The Compliance Journey: Making Compliance Sustainable, provides today's financial leaders with a model to help them evaluate and determine how they want their organization's ongoing Sarbanes-Oxley section 404 compliance efforts to evolve.

As they reflect on the sizeable time and resource commitment their organizations have undertaken to achieve initial compliance, many leaders are also thinking about next year - and all future years - when they must continually test, report, and certify internal controls over financial reporting. Compliance efforts will evolve, particularly as organizations work to reduce compliance costs and create value in a changing business environment.

The Compliance Journey: Making Compliance Sustainable can help. Click the link above to access this valuable new resource, and help your organization begin the next phase in its compliance journey.

KPMG LLP's The Compliance Journey — Balancing Risk and Controls with
Business Improvement  |DOWNLOAD PDF

Compliance with new government regulations, particularly the Sarbanes-Oxley Act of 2002, involves significant effort and poses considerable challenges. Many companies are seeking to leverage their compliance efforts to drive concurrent business improvements, which could include business process enhancements, risk mitigation, transformed controls, and increased business value. These improvements may not only help a business perform better, but also fundamentally reinforce the primary purpose of regulatory mandates-improved transparency in business management and bolstered investor/market confidence. This paper addresses some methods an organization can use to begin transforming how they control-so that controls are embedded within the business and compliance also supports business improvement. It also describes the benefits that can result from a focus that balances business improvement with risk and controls.

An Essential New Role for the Operations Executive: Driving Operations Improvements by Managing Risk and the Total Cost of Control.  |DOWNLOAD PDF

Sarbanes-Oxley is a steep new cost, with direct accountability by the CEO and all executives -- but with the total cost of control and return on investment ('ROI') squarely in the hands of the operations executive. The article espouses the vast potential beyond merely achieving sustainable compliance, such that the executives who rethink business strategies using a "controls portfolio" can discover ways to embed cost-effective controls — ultimately bringing greater risk management and efficiency across the supply chain.

This article is an advertorial from an external publication, Forum, Volume 6, Number 6 / Q.4, Winter Issue.

Federal Agencies — Will Sarbanes-Oxley Fit?  |DOWNLOAD PDF

KPMG's Audit & Advisory Services Center, working in collaboration with KPMG's Federal practice, recently issued a new white paper titled, Federal Agencies — Will Sarbanes-Oxley Fit? A Discussion of Federal Internal Controls. The paper was prompted by discussions between Congress and representatives of federal agencies that could eventually require agency management to provide an assertion in their agency's financial statements on their internal controls over financial reporting and to also obtain an independent auditor's opinion on those internal controls. The white paper includes a discussion of the benefits and challenges of applying Sarbanes-Oxley section 404 to the federal environment.

FEI: Corporate Governance Best Practices for Financial Management  |DOWNLOAD PDF

"Corporate Governance Best Practices for Financial Management - The Roles and Responsibilities of Financial Management and Internal Audit in the Corporate Governance Process" was recently issued by the Financial Executives Research Foundation (FERF) sponsored by Financial Executives International (FEI). The purpose of the study is to further the understanding of executives in financial management (including internal audit and other key participants) of their roles and responsibilities in the corporate governance process. The report discusses The Business Roundtable's 6 guiding principles with input from the Institute of Internal Auditors (IIA) and FEI members. The report notes that a recurring theme underlying many high profile corporate scandals is that an "individual or a small group of senior level executives consolidated power, secretly engaged in dishonest activities and manipulated or intimidated others." The study discusses the importance of thorough, open communication, as well as education and proactive participation by key participants in the corporate governance process.

Oxley on SOX: Room for Changes, But Not From Congress  |LAUNCH SITE

Three years after the passage of the landmark Act that bears his name, Rep. Michael Oxley, (R-Ohio), said there’s room for flexibility in the statute, but added that any proposed changes won’t come from Congress.

Sarbanes-Oxley Section 404: Frequently Asked Questions  |LAUNCH SITE

This document has been prepared for corporate professionals working toward Sarbanes-Oxley Act Section 404 compliance and is designed to help clarify a number of key issues related to management's assessment process as required by S-O 404.

Section 404 Compliance: Top Five Strategic Priorities for 2005  |DOWNLOAD PDF

Now that most publicly held U.S. companies have complied with Sarbanes-Oxley section 404 (S-O 404), business leaders are beginning to grapple with the challenge of sustaining compliance over the long term. Ongoing compliance efforts will evolve over time, in keeping with other changes in the business environment and the efforts of organizations to create value. Experience has taught us that integrating compliance, finance, and operations efforts will help reduce the overall cost of compliance as well as support corporate governance and risk management.

Framework for Evaluating Process/Transaction-Level Exceptions and Control
Deficiencies  |DOWNLOAD PDF

On October 28, 2004 representatives of nine public accounting firms, including KPMG, issued the Framework for Evaluating Process/Transaction-Level Exceptions and Control Deficiencies for use in an audit of internal control over financial reporting. The framework is designed to be used by both issuers and auditors.

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