Functions converge, processes become streamlined and standardized
The reduction of needless complexity
Strengthening weak links
Reduction of human error by automating processes
SOX is not aimed at private companies. However, those that do choose to
implement the SOX requirements will discover that this creates competitive
advantage, as PriceWaterhouseCoopers stated in its 2006 white paper,
“Finding the Silver Lining: How Private Companies Can Benefit from the New
Governance and Disclosure Standards.” SOX is the new gold standard for
business management processes, and private companies may find that they
ignore it at their peril, particularly if they are competing with listed compa-
nies for contracts. SOX rules will decrease the risks associated with consum-
mating the deal for pre-IPO companies. For companies with sophisticated,
widely distributed shareholders, the existence of well-documented internal
controls and governance policies will attract investment capital at lower cost.
And for closely held companies, a reliable control environment will help
owners to protect and preserve their wealth.
104 Part II: Diving into GRC
