Heritage Doll company Essay

I agree with efflorescence to attain full compliance with SOX. As you know about height is private partnership and will be seeking for revolutionary external funding to expansion into a new segment of the printing sector therefore, the new investors are requisite for them because they have to access capital market to raise money for the expansion to a lot invest in equipment as salutary 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 ships social club 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, annual reporting and investor relations. The one of preparation if Apex established the necessary financial statement integrity through the implementation of effective internal control placement to support managements reporting obligations as a public company they needed to obey with the Sarbanes-Oxley Act 2002 (SOX) for successful to going public.Sarbanes-Oxley Act 2002 (SOX) match to PricewaterhouseCoopers mentioned about SOX that it is current regulatory and disclosure issues if company will transform to IPO should consider the followingInternal Controls Sarbanes-Oxley requires a management representatives are chief executive officer 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 canvass committee by one of team have to expert in financial skill. Board of Director Require external e xpert= member from other(a) company. Auditor relationship Require company have to clarify their existing relationship with their outside audit firm. Code of ethical motive Requires a code of ethics for senior financial officer. Loan to company executives Prohibits public company from maintaining credit in the form of a personal loan.One of the advantages when they focus on SOX404 is that it forces company to think pro-actively, identify risks, document an assess existing controls and then design new preventive or detective controls. More everyplace, Connor from Corporate Responsibility Magazine mentioned that SOX has benefited their company because of the recently proposed management guidance from the U.S. Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Boards (PCAOB) to improve efficiency and quality over the long term.Therefore, Apex needed to comply with SOX by going to public aimed to expansion business to other operation and adding more inv estor. This benefit for Apex to comply this standards.ReferencesConnors, T. SOX Benefits. Retrieved from http//www.thecro.com/node/400Medeiros, 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/viewPricewaterhouseCoopers. 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