Youtube - A2Q2

What's required in 1st year as a public company SOX 404A part2

In the first year as a public company, what's required or recommended ...

What's required in 1st year as a public company SOX 404A part 1

In the first year as a public company, what's required or recommended ...

SOX 404B recommended timeline for SPAC 1st time accelerated filer public company

What's the recommended timeline for a company with a Dec 31 year-end ...

Clinical Trial Accrual (CTA) recommended activities for public company readiness / SOX 404 readiness

For biotech companies preparing for an IPO, the clinical trial accrual ...

For biotech companies preparing for an IPO, the clinical trial accrual and clinical manufacturing cost processes require specific SOX readiness activities — including gap assessments, flowchart documentation, risk control matrices, ...and walkthroughs — focused on how outsourced trial costs are estimated, accrued, reconciled against late-arriving invoices, and recorded in the financial statements.

If you're a controller or finance lead at a biotech company navigating SOX readiness for the first time, this video walks through the readiness activities and sub-processes unique to your industry — areas that general SOX guides don't cover because clinical trial accruals and outsourced manufacturing costs don't exist outside life sciences.

Here's what you'll learn: which readiness activities are required, recommended, and optional for a pre-IPO biotech, how the clinical trial accrual process works from trial selection and monitoring through month-end accrual estimation and reconciliation, why late invoices from outsourced trial organizations make accrual methodology a critical control area, how prepayments and vendor payment timing create additional reconciliation complexity, and how clinical manufacturing cost controls mirror the accrual process when production is outsourced.

Timestamps:
0:00 – SOX readiness for biotech: clinical trial accruals and manufacturing costs
0:30 – Assessing control gaps through process owner interviews
1:07 – Documenting controls: why flowcharts are now preferred over narratives
1:40 – Creating the risk control matrix (RCM)
2:10 – Walkthroughs vs. interviews: what is a test of design (TOD)?
3:16 – Testing: why it's optional and where to focus resources instead
3:40 – Clinical trial accrual process overview: trial types, selection, and monitoring
4:04 – Month-end and quarter-end accrual estimation for outsourced trials
4:28 – Why trial organizations send invoices late and how to handle it
4:47 – Prepayments and tracking vendor payment timing
5:05 – Building accrual methodologies and reports for timely close
5:27 – Reconciliation: comparing accruals to actual invoices and truing up
5:45 – Clinical manufacturing costs: outsourced production accruals
6:10 – Reconciling manufacturing commitments to invoices and statements

Kim Le is a CPA and CEO of A2Q2 with 30 years of experience in SOX compliance, internal controls, and IPO readiness — 25 of those years in Silicon Valley working with companies like Airbnb, Uber, Square, and Impossible Foods. A2Q2 takes a systemic approach to compliance, building interconnected controls architecture designed to sustain an enduring public company.

🔗 Ready for a consultation? Visit https://a2q2.com
🔔 Subscribe for SOX compliance and IPO readiness guidance.

Clinical trial accruals are one of the highest-judgment areas in biotech SOX compliance because outsourced trial organizations frequently send invoices weeks or months late, forcing finance teams to estimate costs using accrual methodologies under tight close timelines of five to eight business days. Companies preparing for an IPO need to document how those estimates are prepared, reviewed, approved, and reconciled when actual invoices arrive — and they need controls around prepayments, vendor setup, and outsourced manufacturing costs as well. A2Q2 helps biotech companies build accrual and reconciliation controls that satisfy external auditors and hold up under SOX 404 scrutiny.Show More

Unlocking IT General Controls (ITGC): Essential Steps for SOX Compliance Success!!

IT general controls (ITGC) are the foundational compliance activities ...

IT general controls (ITGC) are the foundational compliance activities — including gap assessments, walkthroughs, risk control matrices, and testing — that companies preparing for an IPO or SOX 404 readiness ...must address across access management, change management, system development, and computer operations.

If you're an IT director, VP of engineering, or compliance lead who's been told your team needs to "get ready for SOX," this video breaks down exactly what that means for IT general controls — without assuming you've done this before.

Here's what you'll learn: the difference between a gap assessment interview and a formal walkthrough (and why walkthroughs are far more effective), how to build a risk control matrix (RCM) for ITGC, the four core ITGC components your auditors will evaluate, and which systems — from your ERP and banking platform to your HRIS, vendor bill payment, and warehouse management — are typically in scope for SOX.

Timestamps

0:00 – What ITGC readiness activities are required vs. recommended
0:32 – Assessing control gaps through process owner interviews
0:58 – Creating flowcharts, narratives, and a risk control matrix (RCM)
1:28 – Why walkthroughs are more effective than interviews for design assessment
2:23 – What auditors look for in a test of design (TOD)
2:46 – When testing is optional and why most pre-IPO companies skip it
3:11 – The four ITGC components: access, change management, system development, and computer operations
4:08 – Change management vs. system development: what's the difference
4:29 – Which systems are typically in scope for SOX
4:56 – ERP systems (NetSuite, Oracle Cloud, SAP, Sage Intacct)
5:28 – Equity administration, expense reimbursement, and file sharing
5:54 – HRIS systems and inventory management
6:24 – Network access, network hosting, and payroll services
6:56 – Vendor bill payment systems (Coupa, Bill.com)
7:23 – Warehouse management systems

Kim Le is a CPA and CEO of A2Q2 with 30 years of experience in SOX compliance, internal controls, and IPO readiness — 25 of those years in Silicon Valley working with companies like Airbnb, Uber, Square, and Impossible Foods. A2Q2 takes a systemic approach to compliance, building interconnected controls architecture designed to sustain an enduring public company.
🔗 Ready for a consultation? Visit https://a2q2.comShow More

Tax process recommended activities for public company readiness or SOX 404 readiness

What internal control or SOX 404 readiness activities are recommended ...

Treasury cash management recommended activities for public company readiness or SOX 404 readiness

What internal control or SOX 404 readiness activities are recommended ...

Procure-to-pay (PTP) process recommended activities for public company readiness / SOX 404 readiness

The procure to pay process — also called the expenditure process — ...

The procure to pay process — also called the expenditure process — requires companies preparing for an IPO or SOX readiness to assess control gaps and document controls across vendor ...setup, purchase orders, invoice approvals, disbursements (check, ACH, and wire), prepaid expenses, account reconciliations, and system administration including SOC 1 report reviews.

If you're a controller, AP manager, or finance lead responsible for getting the expenditure cycle audit-ready, this video walks through every sub-process within procure to pay and explains which readiness activities are required, recommended, and optional.

Here's what you'll learn: the full sequence of readiness activities (gap assessment, flowchart documentation, risk control matrix, walkthroughs, and testing) and when each one matters, why flowcharts have replaced narratives as the preferred documentation method and how the PCAOB is driving that shift, each sub-process within procure to pay — from vendor setup fraud risks and PO vs. non-PO purchase streams through three types of disbursements — and why system administration and SOC 1 reviews are critical when you're using third-party payment solutions.

Timestamps:
0:00 – What activities are needed for procure to pay SOX readiness
0:37 – Assessing control gaps through process owner interviews
1:07 – Documenting controls: flowcharts vs. narratives and the PCAOB influence
1:57 – Aligning documentation format with your external auditors
2:25 – Creating the risk control matrix (RCM) and why auditors rely on it
2:55 – Walkthroughs vs. interviews: why show-and-tell improves accuracy
3:37 – Test of effectiveness (TOE): why most pre-IPO companies skip testing
4:45 – Vendor setup controls and banking information fraud risks post-COVID
5:52 – Purchase orders: PO-based vs. non-PO-based purchase streams
6:06 – Vendor invoice approvals and authority matrices
6:29 – Disbursements: check, ACH, and wire payment controls
6:56 – Third-party payment solutions (Bill.com, Coupa, bank bill pay)
7:10 – Prepaid expenses and advance payments
7:24 – Account reconciliations: review process and documentation
7:54 – System administration, access controls, and SOC 1 report reviews

Kim Le is a CPA and CEO of A2Q2 with 30 years of experience in SOX compliance, internal controls, and IPO readiness — 25 of those years in Silicon Valley working with companies like Airbnb, Uber, Square, and Impossible Foods. A2Q2 takes a systemic approach to compliance, building interconnected controls architecture designed to sustain an enduring public company.

🔗 Ready for a consultation? Visit https://a2q2.com
🔔 Subscribe for SOX compliance and IPO readiness guidance.

The procure to pay process is a high-risk area in SOX compliance because it involves cash leaving the organization through multiple channels — checks, ACH, and wires — each with distinct fraud vectors and segregation of duties requirements. Vendor setup controls have become especially critical since the shift to remote work, with phishing attacks targeting banking information changes becoming significantly more common. A2Q2 helps technology companies design procure to pay controls that address both traditional audit requirements and modern fraud risks across third-party payment platforms.Show More

Order to cash (OTC) process recommended activities for public company readiness or SOX 404 readiness

The order to cash process — also called quote to cash or the revenue ...

The order to cash process — also called quote to cash or the revenue process — requires companies preparing for an IPO or SOX 404 readiness to document and control ...every step from pricing and contract terms through revenue recognition, collections, credit memos, AR reserves, and account reconciliations.

If you're a controller, revenue accountant, or finance leader responsible for getting the revenue cycle audit-ready, this video walks through each sub-process in the order to cash flow and explains which activities are required, recommended, and optional during public company readiness.

Here's what you'll learn: the full readiness activity sequence (gap assessment, documentation, RCM, walkthroughs, and testing) and when each step matters most, why flowcharts are now preferred over narratives and what's driving that shift from the PCAOB, every sub-process within order to cash — from standard pricing approvals and discount authority to revenue recognition under ASC 606, AR reserves, write-offs, and account reconciliations — and how to prioritize when you have a six-month window and testing isn't realistic.

Timestamps:
0:00 – What activities are required for the order to cash process in SOX readiness
0:49 – Assessing control gaps through process owner interviews
1:06 – Documenting controls: flowcharts vs. narratives and why auditors prefer flowcharts
2:16 – Creating the risk control matrix (RCM) and why auditors rely on it
2:42 – Walkthroughs vs. interviews: what is a test of design (TOD)?
3:31 – Test of effectiveness (TOE): why most pre-IPO companies skip testing
4:16 – Pricing controls: standard price lists, discount approvals, and authority levels
5:04 – Order management, contracting, and terms and conditions
5:22 – Customer invoicing and accuracy
5:33 – Revenue recognition and ASC 606 compliance
5:45 – Collections and receivables aging
6:04 – Credit memos, disputes, and pricing adjustments
6:20 – AR reserves: preparation, review, approval, and recording
6:41 – Write-offs and approval processes for old invoices
6:53 – Account reconciliations and investigating discrepancies

Kim Le is a CPA and CEO of A2Q2 with 30 years of experience in SOX compliance, internal controls, and IPO readiness — 25 of those years in Silicon Valley working with companies like Airbnb, Uber, Square, and Impossible Foods. A2Q2 takes a systemic approach to compliance, building interconnected controls architecture designed to sustain an enduring public company.

🔗 Ready for a consultation? Visit https://a2q2.com
🔔 Subscribe for SOX compliance and IPO readiness guidance.

The order to cash process is one of the highest-risk areas in any SOX compliance program because it directly governs how revenue is recognized, collected, and reported in a company's financial statements. Companies preparing for an IPO need to establish controls across pricing authority, contract approvals, revenue recognition under ASC 606, AR reserves, and account reconciliations — with clear segregation of duties at each step. A2Q2 helps technology companies build revenue cycle controls that satisfy external auditors and scale through rapid growth.Show More

Inventory process recommended activities for public company readiness or SOX 404 readiness

What internal control or SOX 404 readiness activities are recommended ...

HR Payroll Compensation process recommended activities for public company or SOX 404 readiness

The HR payroll and compensation process requires companies preparing ...

The HR payroll and compensation process requires companies preparing for an IPO or SOX readiness to document and control every sub-process from new hire approval and onboarding through payroll processing, ...salary changes, terminations, bonus and commission calculations, account reconciliations, and system administration across both HRIS and payroll platforms.

If you're a controller, HR operations lead, or finance director responsible for getting the payroll cycle audit-ready, this video breaks down every sub-process within HR payroll and explains which readiness activities are required, recommended, and optional — including where segregation of duties and SOC 1 reviews come into play.

Here's what you'll learn: the full readiness activity sequence (gap assessment, documentation, RCM, walkthroughs, and testing) and how to prioritize when time is limited, every sub-process within the HR payroll cycle — from requisition and background checks through salary changes, terminations, bonus plans, commission calculations, and account reconciliations, why compensation changes are the primary focus for SOX since the scope is tied to financial statement accuracy, how to handle system administration and access controls when your HRIS and payroll systems are separate platforms, and why SOC 1 Type 2 reports are critical when payroll or hosting is outsourced.

Timestamps:
0:00 – What activities are needed for HR payroll SOX readiness
0:38 – Assessing control gaps through process owner interviews
0:56 – Documenting controls: flowcharts vs. narratives and the Big Four shift
1:41 – Creating the risk control matrix (RCM)
1:57 – Walkthroughs: why show-and-tell is more accurate than interviews
2:44 – Test of design (TOD) vs. test of effectiveness (TOE)
3:06 – Why testing is optional and when it typically begins (year one or two as a public company)
3:43 – New hire approval: requisition, selection, and background checks
4:11 – Onboarding and payroll processing
4:34 – Personnel and salary changes: what SOX cares about
5:06 – Terminations: final pay, accrual release, and severance liabilities
5:30 – Bonus plans: approval, calculation, accrual, and payout
5:49 – Commission plans: rates, calculation, accrual, approval, and payment
6:22 – Account reconciliations: payroll liabilities and expense accounts
6:42 – System administration: HRIS vs. payroll system access controls
7:03 – Segregation of duties across employee creation, pay changes, and approvals
7:33 – SOC 1 Type 2 reports for outsourced payroll and hosting providers

Kim Le is a CPA and CEO of A2Q2 with 30 years of experience in SOX compliance, internal controls, and IPO readiness — 25 of those years in Silicon Valley working with companies like Airbnb, Uber, Square, and Impossible Foods. A2Q2 takes a systemic approach to compliance, building interconnected controls architecture designed to sustain an enduring public company.

🔗 Ready for a consultation? Visit https://a2q2.com
🔔 Subscribe for SOX compliance and IPO readiness guidance.

The HR payroll process is a critical area in SOX compliance because compensation typically represents one of the largest expense categories on a company's financial statements, and errors or fraud in payroll directly impact reported results. Companies preparing for an IPO need to establish controls across new hire onboarding, salary and compensation changes, bonus and commission calculations, termination payouts, and account reconciliations — with clear segregation of duties between who can create employees, edit pay rates, and approve payroll runs. A2Q2 helps technology companies design payroll controls that work across separate HRIS and payroll platforms while meeting SOC 1 review requirements for outsourced providers.Show More

Fixed Assets Internal Use Software process activities for public company or SOX 404 readiness

What internal control or SOX 404 readiness activities are recommended ...