Hein & Associates LLP

(Section 404 of the Sarbanes-Oxley Act)

In 2003, the SEC issued final rules for management reporting on internal controls over company financial reporting, as required by the Sarbanes-Oxley Act (SOX). Management must evaluate its internal controls against a suitable and recognized framework. Compliance with these new rules presents significant challenges for public companies in:

Adapting the appropriate framework for the specific needs of the organization;
Having these controls implemented in a time to meet SEC guidelines;
Ensuring that the system is in place and functioning well in advance of the due date so that it can be documented, evaluated and tested by both management and the company's auditors.

H&A is uniquely qualified to assist your company as it charts its course for documentation, evaluation and testing of internal controls. The skills required for compliance with SEC and PCAOB rules and standards are at the core of our professional experience and expertise:

Experience with the COSO internal controlframework, expected to be the primary criteriafor use in evaluating internal control systems;
The financial reporting process;
Financial statement assertions;
The documentation of internal controls;
Testing and monitoring;
The identification and evaluation of internal control deficiencies;
Suggestions for improvements in internalcontrols.

How We Can Help

Creating a process that is as thorough, reliable and verifiable as the information supporting your financial statements is a significant undertaking for any company. We offer support as you develop, implement and test your system. We can also provide you with ongoing assistance. H&A offers help with your internal control system in the following areas:

Project planning, implementation and coordination

We assist as you design an assessment process that meets your needs as well as the requirements of your external auditors. We help you make sure that all the steps in the plan are completed and help communicate with your companyís external auditors about the plan.

Information and communication systems

We work with members of your organization, including IT professionals, to provide input and guidance as you build your information and communication systems for internal controls.

Design and documentation of internal controls

We help you assess your system to discover controls that may be missing and provide assistance with the design and implementation for them.

Testing

Following implementation, we offer support for required testing and evaluation of internal control systems.

Follow Up

Our support continues as the company grows and updates its documentation for internal controls. We help you incorporate changes in your information and communications system, test the revised internal controls and evaluate the system to help ensure that it continues to meet SEC reporting requirements.

Potential Acquisitions

If there is an acquisition under consideration, we can assist you with a review of its internal controls and compliance with SOX 404.