Most public forest and paper companies in North America are in the midst of, or have recently completed, the complex and expensive process of complying with Sarbanes-Oxley.
The forest and paper industry is capital intensive and heavily dependent on external financing. For public companies within the industry, the importance of eliminating internal control weaknesses , which would otherwise need to be disclosed under Sarbanes-Oxley reporting requirements , cannot be overstated. Any controls soft spots could result in the downgrade of a producer’s rating --- further reducing shareholder value in an industry with a history of below-average returns.
A well-planned approach to Sarbanes-Oxley compliance will ensure not only that a sound control framework is in place, but will also provide opportunities to identify and implement process improvements in a company’s operations overall.
How PricewaterhouseCoopers can help you
PricewaterhouseCoopers has helped hundreds of companies, including many forest and paper companies, prepare and meet Sarbanes-Oxley’s certification requirements. We have found that a successful approach includes:
- Starting early;
- Investing in up-front planning and development of a risk-based approach;
- Learning the “best practices” of other companies that have already complied with the new rules;
- Assessing entity-level controls early;
- Establishing a sustainable compliance approach to minimize future years' certification costs;
- Identifying opportunities for operational improvement;
- Planning for contingencies; and
- Ensuring company wide communication and support.
