Enterprise Risk & Compliance
Sarbanes Oxley Compliance
Generating Enterprise Risk and Compliance Impact
More than a decade since the enactment of Sarbanes-Oxley (SOX), the typical multinational has fairly robust processes in place to enable compliance.
Too often, though, compliance comes at a price with the roll out of large SOX programs that require costly manpower to be redirected away from other strategic risk management activities. Genpact addresses these challenges by reimagining end-to-end operations to meet SOX standards through a combination of process, analytics, and technology capabilities.
Genpact’s end-to-end SOX solution integrates and optimizes SOX compliance with operational risk and other internal control frameworks like Committee of Sponsoring Organizations of the Treadway Commission (COSO) and Control Objectives of Information and Related Technology (COBIT). We not only improve effectiveness and provide scalability; we also bring down the cost of SOX compliance by around 40%.
Our team includes leaders with in-depth experience dealing with the Securities and Exchange Commission and the Public Company Accounting Oversight Board during the drafting of SOX guidelines and standards. The team includes technology experts and leaders with significant first-hand experience from their many SOX engagements.
Our services encompass:
- SOX scoping and planning
- Process documentation and risk-and-control matrices
- Design and operational effectiveness controls testing
- Entity-level controls documentation and evaluation
- Assisting with IT general controls and application controls
- End-user spreadsheet computation
- Deficiency remediation support
- Re-testing of failed controls after management remediation
- Control rationalization and optimization
- Operational risks and compliance risks convergence (including SOX financial reporting-related risks)
- SOX program management
Identified financial adjustment of $320 million due to alignment of books with IAS-16
When running a SOX compliance assessment of a global mining company's fixed-assets process, we identified a financial adjustment of $320 million to correctly state the fixed-assets balance, as per IAS-16.
Once the adjustment was made, we updated the company's fixed-assets register and obtained sign-off from the statutory auditors on the revised value. We also identified gaps in the fixed-assets process and developed an incremental control framework.
For prevention purposes, we created clearly defined processes and policy documents, and took steps to ensure staff is trained to handle future compliance obligations. This approach allowed the client to comply with accounting standards, mitigate the risk of erroneous financial reporting, and strengthen its fixed-asset management controls.