Assistance in SOX implementation and management testing for a Space Telecommunications Company
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Case Study
Assistance in SOX implementation and management testing
The company is developing the first and only space-based cellular broadband network accessible directly by everyday smartphones. It is designed for both commercial and government use and is listed on NASDAQ.
The business situation
The company’s Emerging Growth Company (EGC) status expired on June 30, 2024, and considering that it was the first year of 404(b) certification, the company needed support:
- In understanding the processes, assessing the need for controls, and documenting process flows and RCMs
- In testing the control environment (including ELCs, ITGCs, MRCs, and IPE testing) and developing a mitigation plan for deficiencies identified
- In identifying all applications impacting key processes and performing ITGC testing
- In mitigation of deficiencies due to a lack of review evidence, precision levels applied, and follow-up action
Our team’s role
Process and Control Analysis
Assessed key business processes and evaluated changes impacting the internal control environment
Process Documentation
Prepared detailed process flows and Risk Control Matrices (RCMs) to support control design and risk assessment
Control Design and Implementation Testing
Performed walkthroughs and evaluated the design and implementation of internal controls
Gap Identification
Identified control design deficiencies and areas for improvement
Operating Effectiveness Testing
Conducted testing of control operating effectiveness in line with SOX and COSO requirements
Management Reporting
Developed comprehensive reports for internal audit and key stakeholders, summarizing testing results and identifying issues
Remediation Planning
Supported the development of remediation plans for control deficiencies, including timelines and ownership tracking
The value our team added
- Partnered with management to identify control gaps and implement targeted mitigation plans
- Enhanced process documentation to align with SOX compliance standards
- Developed key tools, including monthly close checklists and evaluation templates, to streamline control execution
- Led auditor walkthroughs and efficiently managed PBC request responses
- Trained control owners on execution and maintaining audit-ready evidence
- Acted as an ongoing advisor during control design, documentation, and implementation
- Operated the end-to-end SOX management testing program
Strengthen Your Control Framework
From Process Analysis to Remediation, End-to-End Support Across the Control Lifecycle
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