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How to reduce costs without legal risks
Our control improvement approach
While recognising the benefit of corporate governance and financial reporting assurance performed by executives, business leaders are still concerned with related compliance costs. Faced with the task of reducing costs, managers experience difficulties selecting an optimal approach that will ensure regulatory compliance and, at the same time, help avoid any material breach of the company’s internal controls.
To assist companies in their cost reduction task, we have published a new booklet: How to find a way to reasonable and balanced cost reductions without incurring legal risks. This booklet addresses our approach to control improvement.
The approach itself has two components. One is based on a top-down model that addresses existing risks, while the other is about internal control structure based on our reasonable economy principle.
This cost-reduction approach was designed based on our work experience with many companies subject to Section 404 compliance requirements under the SOX Act of 2002. It is also useful for companies covered by CSA Multilateral Instrument 52-109, including the amendments thereto as specified in CSA Notice 52-131, though auditor confirmation is not required in this case.
How to find a way to reasonable and balanced cost reductions without incurring legal risks