MENLO PARK, Calif., Aug. 10 /PRNewswire/ -- There's no avoiding it any longer: Starting this year, all publicly traded companies must be in full compliance with Section 404 of the Sarbanes-Oxley Act for their annual report filings. Smaller companies (public companies with market capitalization of $75 million or less) whose fiscal year ends in December 2009 must undergo their first external auditor attestation of internal controls over financial reporting.
(Logo: http://www.newscom.com/cgi-bin/prnh/20090115/AQTH541LOGO)
"Smaller public companies need to prepare now for their Section 404 audits in order to prevent a 'fire drill' prior to the December 15 deadline," said Jim DeLoach, a managing director with Protiviti, a global business consulting and internal audit firm. DeLoach is the author of the firm's white paper, Auditor Attestation of Internal Control Over Financial Reporting: A Small Company Perspective. "Industry research shows that many smaller companies are struggling with their internal control reports. They could have an easier time by paying attention to the lessons learned from the early Sarbanes-Oxley filers related to issues such as documentation and policies; segregation of duties; and information technology security. The clock is ticking on getting these issues resolved."
Since 2007, smaller public companies have been required to comply only with the management assertion requirement of Section 404. Now they will also be subject to the auditor attestation requirement for fiscal years ending on or after December 15, 2009.
In its white paper, Protiviti offers tips to help smaller companies prepare for a successful first auditor attestation, including:
-- Don't delay in case a process takes longer than anticipated -- Apply a repeatable, risk-based, top-down approach -- Focus on the risk of fraud and management override of controls -- Turn identified deficiencies into process and control improvements, such as streamlining business processes and applying enhanced IT controls.
To further assist smaller companies with their first auditor attestation, Protiviti is conducting a complimentary webinar on August 12, 2009 from 10:00 a.m. PDT to 11:00 a.m. PDT. The webinar will explore:
-- Getting started and key decision points -- Potential internal control issues -- A simple approach and practical techniques for the small cap company.
The webinar will be conducted by Protiviti Managing Directors Jim DeLoach, Bonnie-Jeanne Gerety and Paresh Raghani. Register for the webinar at http://www.protiviti.com/go/auditorattestation.
About Protiviti
Protiviti (http://www.protiviti.com/) is a global business consulting and internal audit firm composed of experts specializing in risk, advisory and transaction services. The firm helps solve problems in finance and transactions, operations, technology, litigation, governance, risk, and compliance. Protiviti's highly trained, results-oriented professionals provide a unique perspective on a wide range of critical business issues for clients in the Americas, Asia-Pacific, Europe and the Middle East.
Protiviti has more than 60 locations worldwide and is a wholly owned subsidiary of Robert Half International Inc. . Founded in 1948, Robert Half International is a member of the S&P 500 index.
Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.
http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
Protiviti
CONTACT: Kathy Keller of Protiviti, +1-650-234-6252,
kathy.keller@protiviti.com
Web Site: http://www.protiviti.com/
