HMC Business Consulting, LLC

Herbert M. Chain, MBA, CPA

Independent Director, Audit Committee Chair, SOX Financial Expert, Accounting and Auditing Professional, Professor,  Consultant

Sound advice based on experience

Internal Controls Consulting and Assessment

Stakeholders and regulators are focusing more and more on a company's system of internal controls. While the Sarbanes-Oxley Act of 2002 (SOX) affected public companies, banks, investors and others have looked to SOX as a "best practices" manual of sorts.  

Additionally, fraud, whether resulting in misrepresentations in financial statements or misappropriation of assets, remains a significant business and reputational risk. A well designed, documented, and operating system of internal controls can help mitigate one of the most significant causes of fraud - insufficient segregation of duties. It may also reduce the cost of your audit by having appropriate documentation of your internal controls prepared to be provided to your auditor.

I have worked with clients to design, implement and test the operating effectiveness of internal control and remediation of identified deficiencies. I am thoroughly familiar with professional pronouncements in the area, including the PCAOB's Audit Standard No. 5, and am available for consulting on the design, implementation and assessment of effectiveness of your internal controls, assist in your remediation efforts, and assist in the development of appropriate documentation.

There is a trade-off in designing your control structure: cost and effectiveness. I can assist you in balancing these considerations and coming to the right answer for you - one that is cost-effective and appropriate.