SEC, SOX & Compliance Programs Monitoring

In order to have an effective SEC, SOX and compliance program, your company will need to have strong monitoring controls in place. Candela Solutions has extensive experience ensuring that compliance programs best serve organizational needs.

Keeping up with the change in SEC regulations is an overwhelming challenge. This is a core competency of Candela Solutions that can be leveraged for your company. Rely on us to help make the monitoring component of your compliance program more efficient and effective.

Leveraging COSO's Monitoring Guidance

"Monitoring" is a complex topic that has a lot of different meanings. Candela Solutions' Managing Partner, Ron Kral, served on FEI's Task Force on Monitoring to provide input into the drafting of COSO's Guidance on Monitoring Internal Control Systems published in January, 2009. This Guidance elaborates on the monitoring component of internal control discussed in the 1992 COSO Framework and in the subsequent Internal Control over Financial Reporting - Guidance for Smaller Public Companies published by COSO in 2006. A primary objective of the COSO Monitoring Guidance is to provide practical guidance that illustrates how monitoring can be incorporated into an organization's internal control processes. Common elements of monitoring include supervision, performance evaluation programs, special reviews and internal auditing activities. Oftentimes, a second CPA firm like Candela Solutions, is best positioned to conduct special reviews and sensitive internal auditing activities due to our independence.

Internal Auditing

Once an internal audit need is identified, you may find your team needs additional resources to meet your plan and timeline. Candela Solutions can work with your team to co-source or out-source the function to realize cost efficiencies and tap into specialized expertise.

The Candela Solutions' Compliance practice is fluent in internal auditing and will work with you to fulfill your internal audit needs through:

• Training and staff development
• Technical advisory
• Independent risk assessments
• Audit plan development
• Staffing
• Audit plan execution
• Outsourcing 

Establishing an Internal Audit Function

Establishing an Internal Audit Function is critical for overall business health. It serves as a conduit of assurance and a platform for performance improvement. The board, either directly or through a committee, should authorize resources and help set the agenda for internal audit focus. Built into the function should be a component to identify and investigate fraud and other financial-reporting and operating irregularities. Companies with an internal audit department suffer about half the losses as organizations without an internal audit department, according to the Association of Fraud Examiners.

Candela Solutions assists with many aspects of establishing an internal audit function, including:

• Identifying needs based on organizational complexity, operating environment, industry, strategic plan, etc.
• Recommending organizational placement
• Writing board-charter language for the function
• Identifying staffing needs and compiling a budget
• Drafting policies and procedures
• Authoring risk-assessment methodologies and audit plans to address objectives
• Assisting in staff hiring and development
• Developing and executing a staff-training program
• Establishing a quality assurance program
• Providing co-sourcing and outsourcing resources to perform the internal audit function