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A U.S.-based aerospace company had recently entered the public markets via a SPAC merger. This milestone triggered the urgent need to stand up a comprehensive Sarbanes-Oxley (SOX) compliance program under the compressed timeline required of newly public companies. With limited internal infrastructure and mounting regulatory responsibilities, the organization faced significant pressure to launch a SOX program that met accelerated filing deadlines—without sacrificing quality or audit readiness.
The company engaged SolomonEdwards to help them navigate this critical transition. We led the final implementation phase of their SOX program and established a repeatable compliance framework, while simultaneously juggling IPO-related complexities and operational demands.
We deployed a hands-on, integrated approach tailored to the company’s rapid timeline and growth trajectory. In year one, we began by conducting fraud risk, financial reporting risk and process-level risk assessments. This foundational work guided comprehensive walkthroughs with all key process owners—across both financial and IT domains—to map workflows and control structures.
From there, we refined core SOX documentation, including control matrices and flowcharts. We then built a master control listing. We identified and addressed control gaps, conducted interim and year-end testing of key controls, and documented deficiencies to inform timely remediation. Our team also prepared a formal remediation memo for the company’s material weaknesses and created quarterly presentations for the audit committee and executive leadership.
As our partnership extended into year two, our role expanded to meet evolving needs. When a joint venture arose, we led its integration into the existing SOX framework—conducting walkthroughs with stakeholders, creating new process flowcharts, risk and control matrices, and updating the control environment and risk assessments. In response to growing regulatory requirements, we continue to support the company as they transition from SOX 404(a) to 404(b), expanding our documentation and testing procedures to meet external auditor standards.
Through a focused and collaborative effort, we successfully guided the company through its first year of SOX compliance, resulting in the documented remediation of three material weaknesses. This progress enabled the company to satisfy external auditor requirements and remove the weaknesses from their first annual report as a public entity.
Our support helped instill discipline and repeatability in the company’s internal controls framework, earning continued trust from company leadership and the audit committee. In year two, our scope expanded to include the integration of a newly established joint venture, ensuring a consistent compliance standard across the enterprise.
We continue to support the company as it makes its transition to SOX 404(b), which requires more robust documentation and testing to meet external auditor expectations, marking another step in the company’s maturity as a publicly held entity.