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Strategic solution to strengthen governance and enhance investor confidence

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Socorro Partners understands the importance of Sarbanes-Oxley Act (SOX) compliance. We assist clients throughout the entire lifecycle, starting with a risk assessment, designing and implementing controls, deploying policies and procedures, providing process improvements, evaluating operating effectiveness, offering remediation support, and coordinating with external auditors.

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This comprehensive approach focuses on the integrity of financial reporting, compliance with laws and regulations, and operational efficiency.

Our approach

Experience

Our team has significant experience successfully working with global and multi-location organizations and internal audit teams and executives.

Innovation

We offer customized services to support internal audit functions in driving value for organizations.

Integration

We are a trusted partner that integrates with client teams to foster a collaborative environment.

Scale

We create scalable and sustainable processes, enabling long-term success.

Disclosure and certification requirements

Depending on filer status, public companies must comply with SOX Sections 302, 404, and 906. These sections establish key disclosure and certification requirements.

404(a)

Requires management to design, implement, and assess the effectiveness of Internal Control over Financial Reporting (ICFR) and include a report in the annual filing.

404(b)

Requires external auditors to attest to the effectiveness of ICFR for accelerated and large accelerated filers (not required for smaller reporting companies).

302

CEOs and CFOs must certify each quarter and year that financial reports are fairly presented, in all material respects, and supported by effective disclosure controls and ICFR.

906

CEOs and CFOs must certify each quarter and year that all financial reports present fairly, in all material respects, the company’s financial condition and results of operations, and comply with the Securities Exchange Act of 1934, subject to criminal penalties for false certification.

Key considerations in SOX compliance

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Data integrity

When designing controls, management should establish procedures to review data and reports for completeness and accuracy, supporting effective internal controls and reliable financial reporting.

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Inspectable evidence of review

Evidence of management review should beretained with sufficient detail to demonstrate appropriate control design andimplementation. Documentation should clearly show how reviews are performedwith a level of precision to detect errors, validate data accuracy, and addressidentified issues.

Our services

Co-sourcing

As part of our co-sourcing services, we work alongside your internal audit team to support SOX testing, providing additional resources and specialized experience. This approach offers flexibility and control, allowing you to scale based on your needs while maintaining oversight.

Establishing your SOX program

Whether preparing to go public, transitioning to a new filer status requiring SOX compliance, or acquiring an entity not previously subject to SOX, we partner with management to establish and implement a robust SOX compliance program. Our services include guidance on risk assessment, scoping, control design, implementation, documentation, and effectiveness testing. We focus on helping management meet SOX compliance requirements to achieve readiness for certification and facilitate external auditor reliance—supporting an efficient compliance process and a strong internal control environment.

Outsourcing

We offer full outsourcing of your SOX compliance program, supporting management with their scoping, risk assessment, control design, and design and operatingeffectiveness testing to support certifications. We also collaborate withexternal auditors to enhance reliance and drive efficiencies throughout thecompliance process.

SOX program transformation

Whether your SOX program is evolving or mature, we can assist in identifying opportunities to optimize your compliance program. Our team thoroughly evaluates your current program, leveraging deep experience in SOX program execution, emerging risk areas, and collaboration with external audit firms. Our approach is designed to help create a more efficient, effective, and sustainable SOX compliance process to strengthen the overall control environment.

SOX compliance