Introduction
Achieving Sarbanes-Oxley (SOX) 404(a) compliance is a critical requirement for companies preparing to go public. However, for small and medium-sized businesses (SMBs), navigating compliance can be overwhelming, especially when internal resources are limited.
Many companies turn to large consulting firms for assistance, only to receive one-size-fits-all solutions that don’t align with their specific business operations or budgets. This is where Riverway Risk Advisory provides a significant advantage. Our tailored approach ensures SOX 404(a) compliance while optimizing resource efficiency for SMBs.
Why SOX 404(a) Compliance Matters
SOX 404(a) mandates that company management must establish and maintain effective internal controls over financial reporting (ICFR) and provide an annual attestation of its effectiveness. For SMBs, this means identifying and mitigating financial reporting and cybersecurity risks by implementing a robust internal control framework to enhance transparency and investor confidence, reduce fraud risk and avoid regulatory penalties and reputational risks.
Further, once certain thresholds related to revenue, public float and market cap are triggered, SMBs are then subject to SOX 404(b) which requires external auditor attestation of ICFR via an integrated audit.
How Riverway Risk Advisory Delivers Compliance Success
Customized Compliance Strategies
Large consulting firms oftentimes deploy standardized SOX programs that fail to account for SMB’s size and resource constraints which can become frustrating, time consuming and costly. We call this “jamming a square peg into a round hole”. Riverway Risk Advisory understands that SMBs are not Microsoft, Coca Cola or Amazon (yet!) and takes a different approach by tailoring a right-sized SOX 404(a) program to your industry and operational structure. Instead of a rigid program, ours integrates easily into your existing processes.
Our programs are also scalable as needed, ensuring that compliance efforts and requirements grow with your business rather than becoming an unnecessary burden. We design our SOX 404(a) programs with SOX 404(b) in mind and in sight. From the outset, we collaborate directly with your external auditors to understand and incorporate their preferences and focus areas, ensuring that once 404(b) is triggered, no additional work or resources are needed to meet requirements.
Hands-On Collaboration with a Business Focus
SOX 404(a) compliance isn’t just a checklist, it’s an ongoing effort that requires team engagement and executive buy-in. Riverway Risk Advisory provides hands-on, executive-level guidance throughout the entire compliance process. Our senior advisors work closely with your team, executive management and even your Audit Committee, providing direct support to ensure controls are properly designed, implemented, monitored and reported on. We facilitate interactive workshops to train employees on control execution, ensuring that compliance is understood at all levels. Beyond initial implementation, we provide ongoing advisory support to keep compliance efforts aligned with business goals, effective governance and evolving regulatory requirements.
Additionally, our SOX 404(a) compliance programs take a business-first approach. Our goal is not just to meet compliance requirements but to integrate compliance efforts into the broader business strategy based on our decades of experience across all industry sectors. You will get customized recommendations and support for implementing them, as well as the “what are other companies doing?” view, transforming regulatory obligations into competitive advantages.
Cost-Effective Compliance Solutions
With large firms comes large fees that may not fit SMB budgets. As a boutique firm, Riverway Risk Advisory offers flexible, cost-effective solutions tailored to each company’s needs. Our right-sized teams minimize unnecessary overhead costs while still delivering high-quality compliance expertise.
Conclusion
Achieving SOX 404(a) compliance doesn’t have to be a burden. With Riverway Risk Advisory, SMBs gain personalized expertise, hands-on collaboration, and cost-effective solutions that ensure compliance and provide strong and effective internal controls over financial reporting.
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