Article
The SOX compliance journey: Preparing for compliance
Jan. 15, 2025 · Authored by Chad Miller, Mumta Taneja, Erin Clayville, Matt Reierson, Jim Schoppe
Successfully achieving Sarbanes-Oxley (SOX) 404 compliance is complex, challenging and can seem daunting. Many companies underestimate the necessary scope of documentation, evaluation and testing efforts, as well as staffing requirements.
Drawing on our experience assisting many organizations with their SOX 404 readiness efforts, we have prepared an example “SOX readiness road map,” which may be executed over a one-or two-year period, based on the needs of the organization.
Familiarize yourself with the SOX 404 compliance readiness basics below and download our guide for expanded insights, including a sample 12-month readiness road map.
SOX readiness
Maturing your organization and preparing for an initial public offering (IPO) requires many decisions, including decisions about your internal control structure and framework.
Consider the following as your company continues to grow, scale and take steps toward an IPO:
Embed culture
Establish organizational buy-in through c-suite leadership and nimble management
Start early and educate
Engage with key stakeholders, leverage investments in technology and prioritize the most material risks
Engage with third parties
Understand the holistic ecosystem of controls and engage with your external auditors
Learn, update and improve
Learn from others to avoid pitfalls, keep documents current and segregate duties
