Gearing Up for SOX Compliance 

2 Min. Read

Taking A Proactive Stance with Its Sights Set on a Public Offering, This Company Turned to an Expert Team to Sharpen Its Sox Skills. 

At A Glance 

Company Type: Midsize, private company 

Industry: Technology 

Solution Area: Corporate Governance, Sarbanes-Oxley Compliance (SOX) 

About The Client 

In scaling mode, this private technology company was headed toward an initial public offering but knew it first needed rigor in its processes to be ready for SOX compliance. 

Challenge 

The company’s IPO date was a moving target, but leadership felt a pressing need to be ready as soon as possible: They did not want to miss the opportunity once the window opened up. 

First, the company had to overcome some deep issues: its siloed organizational structure prevented teams from getting aligned. At the same time, the company was moving fast with rapidly growing operations and the intake of new systems and processes that would better match the company’s size and complexity. 

The company needed to adapt to these new ways of working in addition to more rigorous yet efficient corporate governance practices. 

Solution 

ZRG’s group of SOX pros infused the company with expertise and a tailored plan for becoming SOX compliant that would address both the company’s current situation and its goals. 

• ZRG's phased approach to compliance started with establishing a scalable foundation, enabling the company to efficiently meet the full requirements of SOX as it grew. We worked closely with the team to find the right balance between its current state and its desire to eventually meet auditor expectations under SOX’s Section 404(b) expectations. And we helped bridge the inherent siloes by meeting with various stakeholders, to understand their constraints and help them understand their role in SOX. 
• ZRG was a part of the team, as we designed controls and documented processes that established accountability throughout the organization. From our practical training, control owners learned their responsibilities around evidence control execution. 

Results 

• Ready for the IPO, with a clear path for sox 404(b) compliance 
• A well-designed sox program that aligns with current risks and will scale with the company’s continued growth 
• Teams throughout the organization are educated on the more rigorous compliance demands of sox 404(b) and external auditor requirements 
• Detailed documentation in critical accounting areas, so that work is performed consistently and can be transitioned as team members change 

ZRG became an essential partner on the company’s journey toward an IPO. We met the company on its terms, at its level of expertise, to create a customized, manageable phased plan that works for everyone involved. Now, with SOX controls integrated into the workflow and organizational discipline, the team is ready to take on the IPO.