Heritage Doll company Essay Example for Free

Heritage Doll alliance EssayI agree with peak to attain full compliance with SOX. As you know about Apex is private company and exit be seeking for late external funding to expanding upon into a new segment of the imprint sector therefore, the new investors are needed for them because they have to glide path capital commercialise to raise capital 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 dress with SOX by going to public. Apex need to assess their readiness for stable sustain as a public company by requires all forethought to be prepare to meet shareholder and market expectations and address ongoing c ompliance and restrictive requirements, operational effectiveness, risk management, periodic reporting and investor relations. The maven of conceptualisation if Apex established the necessary financial statement integrity through the implementation of effective inner control system to support managements 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 followingInternal Controls Sarbanes-Oxley requires a management representatives are CEO and CFO to provide certain certifications in periodic with the Securities and exchange Commission (SEC) study committee Sarbanes-Oxley requires public company to have set up audit committee by one of team have to skilled in financial skill. Board of Director Require externa l expert= member from other company. Auditor blood Require company have to clarify their existing relationship with their outside audit firm. Code of ethics Requires a code of ethics for senior financial officer. bestow to company executives Prohibits public company from maintaining credit in the form of a personal loan.One of the advantages when they cerebrate 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. Moreover, Connor from Corporate Responsibility Magazine mentioned that SOX has benefited their company because of the recently proposed management steering from the U.S. Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Boards (PCAOB) to improve dexterity 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 investor. This b enefit 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/ tantrumPricewaterhouseCoopers. 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