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Moving Forward

The purpose of this document is to provide an overview of an internal control program and infrastructure that companies can tailor to mesh with existing resources, processes,and technologies, and to provide the missing link that connects strong control activities with responsive corporate governance.
The Sarbanes-Oxley Act of 2002 has literally rewritten the rulesfor corporate governance, disclosure, and reporting. Replete with accounting, disclosure, and corporate governance reforms, this statute seeks, in tangible ways, to “repair” the public’s lost faith inour country’s business leaders, and to reemphasize the importance of ethical standards in the preparation of financial information reported to investors.
Many observers believe thatinstituting these new procedures for internal control and executive certification represents an essential course correction for
public companies, mandating processes that companies should have consideredadopting in the first place. Readers should be aware that internal control makes up just one of the many components of good corporate governance. Numerous other considerations also come into play:integrity and ethical values; management philosophy and operating style; organizational structure; welldelineated
roles and responsibilities for boards, management, and employees; commitment to excellence;effective and proactive boards and committees; and
many more.
The Sarbanes-Oxley Act makes company executives explicitly responsible for establishing, evaluating, and monitoring the effectiveness oftheir company’s internal control structure. At many companies, a significant gap exists between the employees performing control activities and the executives who make strategic governance decisions.In fact, a strong internal control structure can help your company:
• make better business decisions with higher quality, more timely information;
• gain (or regain) investor trust;
•...