Corporate Governance and ISOX

Our SOX department specializes in consulting services in the following areas: creation and maintenance of internal controls in accordance with Sarbanes-Oxley sections 302 and 404.

 

Our team has substantial experience with implementation and maintenance of internal controls on financial reporting in corporations that are traded on US exchanges.  The team manages its projects as a partnership with the client’s executive team – from project planning and risk assessment, through process documentation and control systems verification, to effectiveness testing and drafting of the executive statement.

 

Our team also has substantial experience with working vis-à-vis the big four accounting firms as partners in the implementation of SOX projects.

 

 

Corporate Governance (the Goshen Committee) – ISOX implementation in accordance with the 2009 amendment to securities regulations

 

In November 2009, the Israeli Knesset approved the securities regulations (concerning immediate and periodic reports)(3rd amendment) that pertain to internal auditing of financial reporting, and to proper disclosure in reporting corporations (henceforth “the regulations”).

 

The vast experience our practice has in partnering with corporations that are preparing for the implementation of SOX regulations give us the ability to support your company in this process and in accordance with the required milestones:

 

Periodic Report – 12/31/2009

 

Included in the Board of Directors’ report will be disclosure of any and all actions taken up by the corporation until the report’s date, including: Stating whether a plan has been set to prepare for the implementation of the project.

  • Stating the name of the person within the corporation who is accountable for the implementation of the project.
  • A process map of the steps    -     the corporation sees as critical for financial reporting and disclosure.

 

Quarterly Report – 06/30/2010

 

Included in the Board of Directors’ report will be disclosure of any and all actions taken up by the corporation until the report’s date, including:

  • Stating whether a risk assessment process for an internal audit has been performed, and whether the business processes and internal controls pertaining to financial reporting and disclosure have been documented.
  • Stating whether gaps in the financial reporting and disclosure audit plan have been analyzed

 

 

Periodic Report – 12/31/2010 and onwards

 

This periodic report will be accompanied by an annual report covering the Board of Director’s and management’s assessment as to the effectiveness of the internal controls on financial reporting and disclosure.  This report must present the Board of Director’s and management’s conclusions regarding the effectiveness of the internal controls, and in places where it wasn’t effective - the significant weaknesses and appropriate remedies that were applied and will be applied to the matter.

 

Statements signed by the CEO and the most senior financial executive will be affixed to the annual report of the internal auditing, in accordance with the formats laid out in the legislation.  The statements must include a declaration that the undersigned have appraised the effectiveness of the internal controls on financial reporting and disclosure, and have presented their recommendations pertaining to the effectiveness of the internal controls on financial reporting and disclosure as per the date of the report.

 

Another item to be attached to the annual report on internal control systems is a report by an accountant who is the auditor of the company with his opinion on the effectiveness of the internal controls on financial reporting in the corporation and any significant weaknesses the auditor identifies within the control systems.

 

We provide consulting on the implementation of such projects, in whole or in part, in accordance with the requirements as defined by management.