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Heritage Doll company Essay

I agree with Apex to attain full compliance with SOX. As you know about Apex is private company and will be seeking for new external funding to expansion into a new segment of the printing sector therefore, the new investors are needed for them because they have to access capital market to raise money 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 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, periodic reporting and investor relations. The one of preparation if Apex established the necessary financial statement integrity through the implementation of effective internal control system to support management’s 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 following:

Internal Controls: Sarbanes-Oxley requires a management representatives are CEO 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 audit committee by one of team have to expert in financial skill. Board of Director: Require external expert = member from other company. Auditor relationship: 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. 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. Moreover, 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 Board’s (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 investor. This benefit for Apex to comply this standards.


Connors, T. SOX Benefits. Retrieved from http://www.thecro.com/node/400

Medeiros, 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/view

PricewaterhouseCoopers. 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

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