WHY YOU NEED SOX 404A COMPLIANCE
SOX 404A compliance is as vital to your emerging growth company as oxygen is vital to life – And the reason is this.
SOX 404A requires that you start implementing effective Internal Controls Over Financial Reporting (ICFR). It’s a necessary step to build and protect public trust by reinforcing the internal controls that sustain the accuracy and reliability of published financial information.
So, SOX 404A compliance is a necessity, and NOT a recommendation.
After finally going public, your journey as a public company has only just begun. At this point, what you need to boost and maintain growth is investor confidence, and what you need to get investor confidence is the validation that comes from trust.
So, you see… SOX 404A compliance is not for public benefit alone, but it’s also a mechanism to help you kick start your growth as a public company.