Sarbanes Oxley for Private Companies - Best Practices
Private companies looking to adopt Sarbanes Oxley requirements as part of a “best practices” initiative should consider implementing the following:
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Recruit independent directors for the board of directors and board committees. |
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Establish audit, nominating and compensation committees and draft related charters. |
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Adopt a code of ethics. |
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Evaluate and document internal controls and procedures and consider improving if deemed necessary. |
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Review services provided by outside auditors and adopt policies regarding approval of non-audit services. |
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Engage auditors to perform “pre-review” of internal controls if a public offering is expected. |
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Add MD&A to financial reports. |
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Add corporate governance information to company website. |
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Require executive officers to certify financial reports. |
