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Sarbanes-Oxley   -  The Government Finally Did Something Right!

Sarbanes-Oxley Is A Catalytic Way For Companies To

Increase Profit And Return On Investment

Wait a minute, you say. Your advisors are telling you that Sarbanes-Oxley is going to cost you $300,000 to $500,000 a year or more.   

Well they are wrong!  Sarbanes-Oxley is not a threat or a burden, it's a fact and it's an opportunity. There is nothing in Sarbanes-Oxley you shouldn't be doing anyway. 

Here is some math for you:

The Government actually did good! It has given you an opportunity to excel without costing you a lot of money.

You can't meet the requirements of the act with just auditing, you have to define and mistake proof all your processes.

In the manufacturing world, every step of the production process is checked to ensure a part can't get to the next manufacturing step unless it's perfect. We continue to change the processes, until failure can't happen. 

This concept can be applied to every process within your business. You can failure proof your entire enterprise.

Insight 1, Inc., is a leading company in the field of process management systems, and we are applying these unique tools to both public and private companies who want to build-in the processes for compliance and disclosure into the very fabric of their business. 

Auditing is necessary but auditing alone can't solve the problems. It is expensive and usually not effective. It is very difficult for auditors to know enough about the interrelationships of hundreds of processes, to be able to assess all the potential risk points in a complex business. 

Public companies now have the obligation to implement critical mechanisms and processes that will mitigate the risks associated with certifying their financial and operational results. The Insight 1 solution uniquely involves everyone, in every area, in the integrity and professionalism of the business. 

Private companies are coming under increasing pressure from their banks, shareholders and customers, to follow the principals of Sarbanes-Oxley. This will help provide a strong professional image of the company and show all stakeholders, that you are concerned about the integrity of your business. 

Sarbanes-Oxley Tools and Software

You are probably being inundated with offers of software and tools to help you manage under Sarbanes-Oxley. Some will be good, most are ineffective. The fact is, unless you have a well design system of processes, with built-in checkpoints and procedures to manage specific risks, those tools won't help you very much. 

Insight 1's No Cost/Low Cost Compliance Program

We analyze every single business process and create a process roadmap which allows us to identify material risk areas and potential disclosure points. We then help you build-in processes at every risk point so that the issue is managed, mitigated or disclosed internally. This way everything is handled within the system on a routine basis. This means compliance is built-in to everything you do. This means less cost and a much clearer picture of every business function and how it must operate efficiently, and be in compliance, with your financial reporting. You will be able to certify every operational processes of your business. This normally saves enough money within the business to cover the cost of the added processes for Sarbanes-Oxley and the cost of outside audits!

The following diagram describes typical early warning signs and disclosure points that can be identified. Each one must have an associated process created that will eliminate or manage the risk. This example is for a service type company.

Now you are ready to put measurements on your early warning signs so you know where your greatest risk points are, and you can take early action to solve, mitigate or disclose the issue or concern. 

To read the act go to  http://www.pcaobus.org/rules/Sarbanes_Oxley_Act_of_2002.pdf

 See also: Sarbanes-Oxley Measurement Techniques

 

 

 

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