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Tom Basilo, Chairman & CEO of WS+B GA comments on the Ten Steps Board of Directors Should Take Now As the Sarbanes-Oxley Deadline Approaches
Princeton, NJ, June 13, 2007 -
Thomas A. Basilo, Chairman & CEO of WithumSmith+Brown Global Assurance (WS+B GA)
www.wsbga.com, a full-service provider of Sarbanes-Oxley (SOX) compliance, internal audit, IT and risk assurance consulting services, commented today on the 10 most urgent steps he believes boards of directors should take in order to meet the SOX compliance deadline recently set by the Securities and Exchange Commission. The list, compiled by WS+B GA, includes:
• Set up a planning meeting with the CEO and CFO to assess Section 404 readiness.
• Assess the attitude of the CEO and CFO in undertaking the Section 404 compliance project.
• Select a point person from the Audit Committee to closely monitor the SOX compliance project on behalf of the board of directors.
• Immediately begin the process of hiring an outside consulting firm to assist the company in meeting its compliance obligations if the CEO and CFO cannot provide assurance that the company will be prepared to report on the effectiveness of the system of internal controls over financial reporting by year end.
• (If hiring an outside consulting firm), assess its knowledge of the new auditing standards and its capability to adapt its methodology to the new standards.
• Meet with the Section 404 compliance team (CEO, CFO, CIO, department heads, consultants, etc.) and establish a timetable for completion.
• Treat the project as a business process improvement exercise and not simply a compliance project.
• Review the company’s 2007-2008 internal audit plan and revise it to incorporate the internal audit department the Section 404 compliance project.
• Educate board members on their fiduciary responsibilities under SOX.
• Avoid procrastination. Most companies underestimate both the amount of time the project will take and the resources necessary to complete the entire process.
The new post-SOX environment has created both risks and opportunities for boards and officers, but Mr. Basilo commented that he believes the positives outweigh the negatives and include improved investor confidence, the elimination of concern over auditor independence and CEOs and CFOs are becoming more accountable for their actions.
“The role of the board of directors has changed drastically since Sarbanes Oxley, and it is vital that the boards of directors understand their role in SOX compliance and the benefits it can heed for their organization,” said Basilo. “Embracing the revised guidance offered by the SEC and the new auditing standard proposed by the PCAOB will help the board and the Company overcome and effectively manage the challenges of SOX.”
A 35-year veteran of the accounting industry, Mr. Basilo is a frequent author of articles focusing on the impact the Sarbanes-Oxley Act of 2002 has had on middle market and small businesses. He is member of several organizations committed to entrepreneurial issues, and in 2006, under his direction, WS+B GA received Practical Accountant magazine’s “Practice Innovation Award” for its unique approach to addressing SOX compliance.
About WithumSmith+Brown Global Assurance, LLC.
WS+B GA is headquartered in Princeton, New Jersey and provides counsel and project support for Sarbanes-Oxley and other internal audit and risk assurance related services. WS+B GA offers a staff of highly-trained individuals who are subject-matter experts on a wide range of compliance, corporate governance and business process issues. The firm serves a diverse clientele ranging from public middle-market companies to pre-IPO and private equity/venture capital-backed corporations. WS+B GA offers clients innovative methodologies that are entrepreneurial in spirit resulting in a customized approach stressing hands-on, personalized service. For more information please visit
www.wsbga.com.
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