Internal Controls & Governance Compliance for an IPO
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- Mar 25, 2025
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In this video, you'll learn key steps to prepare for going public. We’ll cover how to establish a strong governance structure, including board composition and key committees, and why implementing internal controls is critical for financial reporting and Sarbanes-Oxley (“SOX”) compliance. You’ll also discover how transparency and proactive communication can build investor confidence and how to develop risk management strategies to navigate regulatory challenges. Watch now for expert insights on setting your company up for success in the public markets.
For a deeper dive into SOX compliance for public companies, check out this article: Risk Assessments for Public Companies | SOX Compliance.
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Transcript
Voiceover:
Going public is a significant milestone, but it comes with challenges in governance, internal controls, and compliance. Companies that take a proactive approach can position themselves for long-term success in the public market and with key stakeholders. Let's explore what you need to know!
First, define the board composition, overall objectives, and key committees which include the audit committee, compensation committee, and governance committee. A well-defined governance structure helps achieve oversight, accountability, transparency, and effective decision-making.
Next, meet regulatory requirements in financial reporting, compliance, risk management, and internal controls. Robust internal processes safeguard the company against financial and operational risks, helping adherence to regulatory compliance, including Sarbanes Oxley (“SOX”).
SOX compliance is a must because it not only enhances investor confidence but helps avoid legal penalties. Adhering to SOX requirements means implementing and maintaining internal controls, conducting regular internal audits, and achieving accurate financial reporting.
Anticipate attention from regulators, auditors, investors & the public throughout this process. Proactively preparing for increased scrutiny from external stakeholders enhances corporate reputation and strengthens stakeholder trust.
Lastly, identify risks & implement conflict of interest policies. Effective risk management strategies maintain stakeholder trust and helps achieve long-term sustainability. By addressing these key areas, your company can confidently prepare for the journey to going public. Need expert support? Contact us today!
IPO Case Study: Controls & Governance
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