SOX 302 Disclosure Committee

Preparing and validating your financial reporting disclosures is made easy with a Disclosure Committee. It’s that extra set of hands ensuring the accuracy and completeness of the financial disclosures in your financial reports.

In an IPO, why do you care about the Disclosure Committee for SOX 302?

In an IPO, what is the importance of a Disclosure Committee for SOX 302? What are potential penalties if disclosure controls don't exist or if 10K or 10Q are wrong?
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Once you become a public company, the need for SOX compliance kicks in right away, and one of its provisions that will greatly impact your company is SOX 302.

SOX 302 becomes a part of your quarterly routine. It’s so important that ignoring it is a blatant violation of the SEC rules that make the section required for every publicly traded company in the United States. The CEO and CFO need to submit and directly attest to the accuracy of the financial information in your financial statements – A process that you absolutely cannot leave to chance.

You must ensure that the disclosure of your financial information is accurate, complete, and timely. It’s a rigorous process that can only be simplified with effective disclosure controls.

Having effective disclosure controls means that you have controls that will ensure accurate, complete, and timely disclosures of financial information in your 10k and your 10Q. So, effective disclosure controls are a MUST have for you, once you go public – And this is why we stress that you should set up a Disclosure Committee.


The Disclosure Committee is a vital part of your company when it goes public. It ensures that the financial statements in your 10K or your 10Q are accurate, complete, and timely. Also, besides ensuring the completeness, accuracy and timeliness of your financials, the Disclosure Committee also supports the CEO and the CFO’s certifications.

Setting up and running a Disclosure Committee might seem hard at first, but we make it easy for you with our step-by-step procedures.

  • Govern the disclosure committee with a charter.
  • Establish a meeting timeline.
  • Set an agenda for the meeting.
  • Committee members should review the agenda before the meeting.
  • Hold the meeting and have robust conversations to challenge each other.
  • Update any existing litigation
  • Review and validate the 10K and the 10Q.

Ensuring The Accuracy  And Integrity Of Your Financial Disclosures

The key responsibility of the Disclosure Committee is to collect all information to ensure that all your disclosures are complete and accurate in your 10K and 10Q.

The Disclosure Committee compares the 10Ks and the 10Qs with the press release to check if there are omissions of information like potential lawsuits, risk factors, and other types of developments in the financial section.

Designing and Executing Disclosure Controls

The Disclosure Committee ensures that your disclosure controls and procedures are properly designed and implemented. It supports your company in preparing financial report disclosures.

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