In response to the financial scandals, in 2002 the United States enacted the Sarbanes-Oxley Act (SOX) extending the requirements regarding the internal control systems of financial reporting. In subsequent years, similar regulations have appeared in the European Union (EU Directive 8 or Euro-SOX) or in Japan (J-SOX).

According to those standards, companies are required to document and regularly test the financial reporting control mechanisms. KPMG offers support in the implementation of these requirements.

 

Our services, regarding the implementation and the ongoing realization of the requirements related to the financial reporting control, include:

• Defining the scope of processes in the company, which should be controlled
• Developing the required documentation describing the processes, risks and control mechanisms in accordance with the group guidelines or KPMG standards
• Identification of the key control mechanisms
• Testing the creation and implementation of control mechanisms
• Testing the operating effectiveness of control mechanisms
• Developing the recommendations designed to improve the effectiveness of control mechanisms
• Supporting the implementation of recommendations.

 

In analyzing and supporting Clients to project a control environment over financial states, we utilized the Control Portfolio Analysis Methodology (CPAM). CPAM approach helps to design a control environment that adequately addresses the risks involved in financial reporting, taking into consideration the cost effectiveness of the control mechanisms.

KPMG services in the SOAS scope are based on supporitng organization in implementation and effective maintenance and sustainability of the program with compliance to SOX 404.

 

Useful links

• Audit Committee Institute
• Advisory Institute
• KPMG Shared Services and Outsourcing Institute
• CA/CM - Continuous Auditing and Continuous Monitoring
• Climate Change & Sustainability
  
• Enterprise Risk Management
• The effectiveness of business processes - monitoring and control