CFO Consulting Partners Expands to Long Island
CFO Consulting Partners is pleased to announce that we will now be servicing Long Island.
273 Walt Whitman Road, Suite 305
Huntington Station, NY 11746
Newsletter – May 2010
Small Company Sarbanes-Oxley is Just Around the Corner
As you may already know, on June 15, 2010 Section 404(b) of the Sarbanes -Oxley Act of 2002 becomes effective for all public companies traded on an exchange that have a market capitalization of under $75 million. What does that mean for you or your clients?
For registrants with a year ending on or after June 15, 2010, their independent registered accountants must issue an opinion on Management’s Assessment of Internal Controls over Financial Reporting disclosed in the registrant’s Annual Report on Form 10-K. The opinion will state whether or not the firm agrees with Management’s Assessment. Numerous registrants have performed the basics of documenting their system and identifying key controls. However, many small companies have not done extensive testing that will be acceptable to their auditors.
CFO Consulting Partners LLC can assist you or your client(s) in preparing for the first attestation of internal controls over financial reporting. Our experts can perform the following to get you on the right path:
- Walkthroughs of existing documentation
- Review of key control identification
- Test script review and testing
- Remediation where necessary
- Coordination with independent registered accountants
Additional information is available at http://www.sec.gov/news/press/2009/2009-213.htm
Newsletter – November 2009
International Financial Reporting Standards and What it Will Mean for Your Company
Conversion to International Financial Reporting Standards ( IFRS) from US Generally Accepted Accounting Principles (US GAAP) is more than an accounting exercise. For many companies, it can significantly affect the financial reporting for certain aspects of the entity. Hence, the need for proper planning is imperative.
Executives need an early understanding of the potential ways in which conversion to IFRS may affect their accounting policies, people, information systems, and controls. IFRS include a specific standard that sets out all transitional requirements and exemptions available for first-time adopters.
For instance, an opening balance sheet is prepared at the date of transition to IFRSs, which is the beginning of the earliest comparative period on the basis of IFRSs. Accounting policies are chosen from IFRS in effect at the reporting date. Generally, those accounting policies must be applied retrospectively in preparing the opening balance sheet and in all periods presented on the basis of IFRS. However, retrospective application of changes in accounting policy is prohibited in some cases. At least one year of comparative financial statements must be presented on an IFRS basis, and first-time adopters may report initially in either annual or interim financial statements
For more information on getting started, see an article published by The CPA Journal in October, 2009 on “Planning Ahead For IFRS 1” athttp://viewer.zmags.com/publication/742328e2#/742328e2/26
Newsletter – October 2009
SEC Issues Revised SOX Compliance Date for Smallest Reporting Firms
On October 2, 2009, the SEC approved an additional extension for companies with a public float of $75 million or less. The extension moves the compliance date to June 15, 2010, meaning that companies must comply with Section 404 requirements for periods ending on or after that date. No further extensions will likely be granted. You can view the SEC press release concerning this matter in its entirety at the following http://sec.gov/news/press/2009/2009-213.htm
Newsletter – August 2009
SOX and Internal Controls Over Excel Spreadsheets
Marc Engel, CPA, CISA, CFE
Many companies not previously subject to SOX are required to comply in their current fiscal year. This includes non-accelerated filers and smaller reporting companies. Existing companies that are SOX compliant should now be compliant for their primary computer systems and applications. However, many of these companies may need to tighten controls over applications such as Excel. These are often used in accounting and finance departments to generate calculations or support for journal entries or business decisions.
Risks involving the use of Excel need to be considered. For example, a controller might use an uncontrolled Excel spreadsheet to control fixed assets. Formulas are not locked, because each new purchase adds a line to the list of fixed assets. Approvals consist of a signature on the hard copy. Or Excel may be used to prepare financial statements and for variance analyses; but lack of control over input cells, output cells, formula results, and different versions of the spreadsheet may cause errors which may then appear in the financial statements and the MD&A. Consequently, lack of proper controls over such applications could result in a finding of a significant deficiency or even a material weakness. If not corrected prior to year end, this might have to be reported as an exception in the annual report.
The good news is – COSO compliant, effective controls are easily implemented. Five basic areas are: Risk Assessment, Limited Access, Design and Documentation, Change Controls, and Monitoring.
