Sarbanes-Oxley (SOX) Compliance
Strengthening controls. Enhancing confidence. Ensuring compliance.
Sarbanes-Oxley (SOX) Compliance
We help clients simplify SOX compliance needs, strengthen internal controls and reduce long-term compliance costs with tailored, industry-specialized SOX programs.
SOX compliance solutions
In a continuously evolving risk landscape, it’s crucial to have the right talent for your SOX compliance program.
Baker Tilly recognizes the need for a flexible approach. Key components to successful SOX compliance programs include collaboration with external audit and management, a forward-thinking approach utilizing digital capabilities and a deep understanding of how your IT systems contribute to a SOX-compliant environment.
As your organization grows, your needs for SOX compliance support may fluctuate over time. Baker Tilly identifies ways to enhance efficiency and effectiveness in your SOX program and provides meaningful, actionable recommendations that can be implemented across all three lines.
Whether preparing to go public, recently issuing an initial public offering (IPO), or operating as a mature public company acquiring new businesses, Baker Tilly has the experience to support you with your SOX compliance needs. Our approach extends beyond technical execution; we integrate seamlessly into your operations by understanding your culture, anticipating challenges and embracing the human element of SOX compliance.
SOX readiness often presents common challenges, including unclear ownership of controls, lack of documentation, manual processes that increase risk and difficulty aligning cross-functional teams.
We understand SOX compliance goes beyond finance and IT—it demands an organization-wide commitment to a controls culture, with all team members working toward the same goals. We work with our clients to position themselves for success in the short-term by providing practical and sustainable solutions to remediate deficiencies while focusing on long-term program improvements.
Baker Tilly works closely with clients’ SOX compliance and internal audit teams, often serving as their outsourced partner to deliver the flexibility needed for SOX compliance. Whether supporting a lean internal team at a smaller organization or addressing the complex requirements of a multinational company, our approach scales to meet your needs. Our services include:
- Program governance
- Risk assessment and scoping
- Process and control documentation
- SOX testing (design and operating effectiveness)
- Deficiency management and remediation
- Management and audit committee reporting
- Training and education
Recognizing that each of our SOX client’s programs and compliance needs are different, we co-develop tailored approaches to meet individual client needs. We provide industry insights and leading practices that help our clients make informed decisions about their internal control environment and SOX compliance program.
SOX compliance is a continuous journey for any organization. Even organizations which have been SOX compliant for decades seek ways to increase program efficiency and effectiveness, strengthen internal controls, reduce compliance costs and integrate controls into their business operations.
At Baker Tilly, we start by understanding where our clients are today and where they aim to be. We help establish frameworks for ongoing improvement, including regular program reviews and benchmarking against leading practices, ensuring that SOX programs remain agile and effective over time. Additionally, we integrate emerging trends and regulatory expectations into the optimization process to keep our clients ahead of the curve.
We also help clients get the most out of their governance, risk and compliance (GRC) platforms, leveraging our alliances with AuditBoard and Workiva to enhance automation, improve control monitoring and drive efficiencies across the SOX program. Our approach may include:
- Reassessing SOX risk and scoping processes
- Rationalizing controls to minimize testing efforts
- Automating controls through existing IT investments or new technologies and analytics, including robotic process automation (RPA) to streamline manual processes
- Enhancing control documentation and leveraging ERP system workflows to develop automated controls
- Streamlining reporting processes with data analytics to provide greater insights and risk identification
- Integrating SOX with enterprise risk management (ERM)
- Providing tailored training and education
Leveraging smart automation
Enhancing SOX compliance through integrated IT application and automated controls significantly simplifies processes, reduces costs and improves efficiency. Baker Tilly combines deep SOX experience with cutting-edge technology to streamline programs, minimize manual interventions and increase control reliability. By embedding automated application controls directly into business processes, organizations enable real-time monitoring, enhance control execution consistency and eliminate manual checks. This approach ensures that key compliance requirements are automatically met without additional administrative burden.
Additionally, our use of intelligent automation—including RPA and scripts—creates efficiencies in testing approaches and reduces manual workloads, allowing organizations to focus on higher-value compliance activities.
SOX compliance requirements have strengthened the internal control environment at public companies, increased investor confidence in financial reporting and stabilized trading markets. Private companies can also benefit from these principles, especially in scenarios such as preparing for an IPO, securing private equity or debt financing, navigating rapid growth, or responding to regulatory or stakeholder expectations.
Implementing stronger internal controls can enhance financial reporting accuracy, improve operational efficiency and mitigate risks, making the company more attractive to investors and lenders. Additionally, we provide education and training to help leadership and key personnel understand internal control best practices, fostering a strong controls culture that supports long-term success. By taking a proactive approach, private companies can accelerate public company readiness when the timing is right.
SOX readiness: Preparing for an IPO
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IT SOX compliance
The backbone of an effective SOX environment
Effective SOX compliance relies on well-controlled technology, requiring a deep understanding of how ERPs, third-party solutions, data warehouses and reporting functionalities interact with business process controls. These interdependencies are crucial for designing, implementing and maintaining a robust control environment that supports accurate financial reporting and regulatory compliance.
