Publicly Traded Transportation Client Drives SOX Compliance Success After Risk Assessment & Rework of Internal Control Matrix
The client is a publicly traded organization that produces electrified powertrain systems. As a result of going public late in 2020, they had to implement measures to ensure Sarbanes-Oxley (SOX) internal control requirements in addition to remediating material weaknesses.
To do this, they contacted the Bridgepoint Risk and Compliance team for support with development and implementation of the internal control framework needed for SOX regulatory compliance as a first-year company.
As a rapidly growing startup, the client was focused on growing and operating their business. They had a small finance and accounting department and no internal audit function, so they turned to Bridgepoint for the additional resources and expertise needed to create a strong SOX program.
Bridgepoint worked with the client to build the internal controls framework from the ground up. Our consultants performed a variety of required SOX compliance tasks, including risk assessment, process documentation, control design and operation testing, remediation assistance, and segregation of duties analysis.
While the client implemented modifications and enhancements to NetSuite, Bridgepoint assisted in identifying changes needed to streamline and automate controls where possible to drive efficiency across SOX processes and testing.
As processes and controls were evolving, Bridgepoint was able to adapt to ongoing changes while continuing to meet external auditor deadlines. Bridgepoint provided regular SOX program updates to accounting department management and the audit committee.
Bridgepoint was able to provide multiple deliverables, including a financial statement risk assessment that identified key financial reporting risks, process and control narrative documentation, Risk and Control Matrices (RCM) covering business, IT, and entity-level risks, and independent SOX testing results that were relied upon by the external auditors.
Working in close collaboration with management, Bridgepoint was able to provide the support needed for the execution of a successful, first-year SOX compliance program and remediation of all material weaknesses.
- Resource constraints
- NetSuite internal controls not identified
- Challenges to achieve SOX compliance
- Reduction in risk
- Improved internal controls
- SOX compliance attained
- Financial Statement Risk Assessment
- NetSuite Optimization
- SOX Compliance