After the Securities and Exchange Commission granted SMBs one last Sarbox compliance delay, but before the House of Representatives passed legislation that would, among other things, exempt public companies with a market capitalization of less than $75 million from Sarbanes-Oxley 404(b) compliance, I had the opportunity to speak with Vibato CEO and co-founder Teresa Bockwoldt.
Vibato is a Sarbanes-Oxley and SAS compliance solutions provider that Buckwoldt co-founded in 2007. She is Six Sigma certified, and has been personally involved in dozens of "fullblown Sarbanes-Oxley audits from beginning to end." Her experience working for and with both regional and Big Four audit firms taught her what those auditors were looking for in a 404 audit, she said, and she was able to come up with "a single list of risks that each of the [firms] were looking for on a per-process basis, and [she] pre-defined the controls that would mitigate those risks." Then, using Six Sigma methodology and world-class best practices, she developed a product that the company says can cut compliance costs and audit duration significantly.
The company recently released a list of New Year's resolutions for small cap filers that want to be prepared in case the Senate or the president decides not to pass that compliance exemption. Bockwoldt told me the guidance comes out of experiences she has had working with small companies in the last year, or with larger companies that wanted to cut back their internal controls and lower their compliance costs.
Five of those resolutions are as follows: