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Corporate Compliance & Ethics

In July of 2002, a new piece of federal legislation was enacted.  This legislation was named the Sarbanes-Oxley Act.  This legislation significantly changed the regulation of corporate governance and financial practices for all U.S. public companies, their boards of directors, their management and their public accounting firms.  Violations of the act can result in sanctions ranging from fines to criminal penalties.

Although the Sarbanes-Oxley Act of 2002 only applies to public companies, the concept of corporate governance over ethical financial and operational issues applies to all entities: public, private, governmental, quasi-governmental and non-profit.  It is incumbent that management implements and complies with policies that pertain to ethics as well as financial controls.  They must also ensure that their agents and employees comply as well.  If these policies are neither implemented nor complied with, management with oversight responsibility could be subjected to both civil and criminal penalties.

Mitigate your liability and encourage a culture of compliance.  Need direction?

We can help.  At Holman Frenia Allison, P.C., we understand the value of ensuring that employees and management are in compliance with ethical standards and financial controls.  The traditional audit approach provides a “look-back” at events and operations that have already taken place. We have the ability to perform fraud auditing and forensic accounting, a much higher level of assurance than a standard audit, which can provide these clients with the levels of assurance they desire.

Other clients prefer a more real-time approach to assessing these same compliance objectives.  This approach, often referred to as the continuous monitoring approach, provides clients with information that affords them the opportunity to be proactive and forward-thinking in their compliance strategies.  Clients engage a strategy whereby they mitigate their risk by:

  • deterring an incident from ever occurring
  • increasing the probability of limiting a loss; or by
  • limiting a violation to a one-time, isolated incident.

So whether your approach is reactive or proactive, we can deliver the products and provide the services that best fit your needs and your budget.

We can help you:

  • Monitor compliance with internal controls.
  • Design and implement a system of internal controls conducive to eliminating waste and abuse, and to deterring fraud.
  • Design and implement an ethics policy.
  • Provide training and education to staff and management.
  • Design and implement an anonymous employee reporting mechanism, such as a hotline, allowing them to report waste, abuse and fraud.
  • Monitor your hotline and remedy problems.
  • Design and implement policies on how management should respond to anonymous employee reports if they decide to monitor the hotline themselves.
  • Design and implement compliance policies for ethics, internal controls and operational issues.

Fiscal responsibility – it’s your choice.

Holman Frenia Allison, P.C. – Honesty and Fidelity.

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