Heritage Doll company

Topics: Internal control, Initial public offering, Public company Pages: 2 (532 words) Published: October 16, 2014
Does it make sense for Apex to attain full compliance with SOX? And why or why not?

I agree with Apex to attain full compliance with SOX. As you know about Apex is private company and will be seeking for new external funding to expansion into a new segment of the printing sector therefore, the new investors are needed for them because they have to access capital market to raise money for the expansion to a lot invest in equipment as well as substract inventory and adding more promotional costs thus they have to going publics and this is a time decision for them because it will be forever changes how Apex goes through doing their business so a Initial Public Offering (IPO) has access to more and deeper of information, sources of capital than a private company thus they needed the 1st thing to align with SOX by going to public.

Apex need to assess their readiness for stable sustain as a public company by requires all management to be prepare to meet shareholder and market expectations and address ongoing compliance and regulatory requirements, operational effectiveness, risk management, periodic reporting and investor relations. The one of preparation if Apex established the necessary financial statement integrity through the implementation of effective internal control system to support management’s reporting obligations as a public company they needed to comply with the Sarbanes-Oxley Act 2002 (SOX) for successful to going public.

Sarbanes-Oxley Act 2002 (SOX)
According to PricewaterhouseCoopers mentioned about SOX that it is current regulatory and disclosure issues if company will transform to IPO should consider the following:

Internal Controls: Sarbanes-Oxley requires a management representatives are CEO and CFO to provide certain certifications in periodic with the Securities and exchange Commission (SEC) Audit committee: Sarbanes-Oxley requires public company to have set up audit committee by one of team have to expert in financial skill....


References: Connors, T. SOX Benefits. Retrieved from http://www.thecro.com/node/400
Medeiros, M. (2013). Preparing for SOX 404(b) and an IPO. Retrieved from http://www.wolfandco.com/solutions/insights/602-preparing_for_sox_404_b_and_an_ipo/view
PricewaterhouseCoopers. Roadmap for an IPO. Retrieved from http://www.pwc.com/us/en/transaction-services/assets/roadmap-for-an-ipo-a-guide-to-going-public.pdf
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