Common SOX readiness pitfalls to avoid

Like any project, SOX implementation has its challenges. Although some may be unexpected or unique to the company’s
situation, many others are all too common—and largely avoidable. Here are several to watch out for:

Trying to accomplish too Ineffective risk assessment Lack of effective communication

much, too soon and scoping among team members
Moving too fast can put a heavy burden on If a risk assessment is not performed or is not Set up regular communication in all aspects of
company resources. Being realistic about the effective, there is the potential for a company your project. Provide multiple channels for
scope, budget, and timing can help you to spend a disproportionate amount of time interaction and have a way to escalate issues that
accomplish your project goals more effectively. and effort in areas of less risk instead of require attention and resolution.
prioritizing areas of greater risk.

Sticking with the familiar Untimely and unplanned Excluding people outside
Implementing SOX can provide a fresh schedule changes finance and accounting
opportunity to revisit existing laborious manual Too many schedule changes can cause you to SOX has stakeholders beyond the financial and
processes and controls that protect against the miss deadlines and lose resources. Set up a accounting functions. Keep them in the
current known risks, and replace them with formal process for managing and responding communication loop and provide sufficient
automation that can mitigate the same risks, quickly to resourcing requests and maintain a training over SOX requirements and how that will
but are also efficient and sustainable in dedicated core team to mitigate the risk of change their day-to-day way of executing and
alignment with your growth plans. schedule changes. evidencing their internal controls.

Not having the appropriate skills Inconsistent ways of working Failing to coordinate with
and experiences To avoid confusion and wasted time, use external auditors
Identify your go-to people for supporting the leading methodologies, tools, and templates Meet with external auditors upfront so they
project, including external resources that can so the SOX team can carry out their work in a know about your project—including the
work across your business, share leading consistent manner. conclusions of your risk assessment, the controls
practices, and bring in specialized help as needed. you chose, and how you designed them.

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