The Sarbanes-Oxley Act requires proper internal controls and procedures to ensure correct financial reporting of public companies. To ensure compliance the law specifically requires companies to:
- Establish internal controls and procedures
- Certify their completeness and quality
- File an Internal Controls Report
- Have an external auditor attest to the adequacy of your internal control system
One of the key reporting elements and the item, which was the leading cause for public restatements – REVENUE – is more under scrutiny than ever. How are revenue related processes handled at your company? Can you be sure revenue is managed correctly throughout the entire revenue cycle? What processes and checks and balances to you have in place to ensure proper revenue reporting?