Cut SOX Compliance Costs From $5.2 MM to $600k
Leading oil field services company, delivering products and services that facilitate oil and gas exploration and production
Our client’s first year of SOX compliance cost $5.2 million, a huge cost overrun. They needed a full examination of their operations to remove defects and deficiencies and improve their compliance program.
Our thorough examination uncovered the need to optimize their reporting procedures and educate their stakeholders of the documentation required by their external auditors.
Consequently, they now have a clear path for future testing and communication with their external auditors, and immediately reduced their cost of compliance from $5.2 million to $1.8 million, and ultimately to $600,000 by year three, while dramatically enhancing internal controls.
Read on for more information on how we successfully delivered a positive outcome for our client.
Our client had tackled SOX compliance for the first time, resulting in major cost overruns with a total cost of SOX compliance for the first year of $5,2 million. Furthermore, they had several material weaknesses and a substantial number of significant deficiencies.
Our client needed to conduct a comprehensive study of their operations in order to reduce the amount of material flaws and serious deficiencies, as well as streamline their compliance program to increase its efficacy.
Following a thorough investigation, our subject matter experts determined that the problems our client was encountering were not due to a lack of controls, but rather to a lack of proper risk mapping and controls documentation.
We streamlined their reporting process and trained stakeholder personnel on the types of documentation required by their external auditors. As a result, they now have a clear path for testing and communicating with their external auditors in the future, lowering the cost of compliance while significantly improving internal controls.
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