Elizabeth worked with a well-known fintech company that offers a secure online platform for buying, selling, transferring, and storing cryptocurrency. The company is a large, accelerated filer for SEC reporting purposes and had recently acquired an institutional trading platform. The acquired company was not public, so Elizabeth’s team was hired to assist with financial integration and Sarbanes-Oxley Act Section 404 (SOX 404) compliance.

Elizabeth led a team that supported the Chief Accounting Officer by:

• Assessing the acquiree’s financial reporting systems, processes, and IT general controls
• Providing a gap assessment highlighting improvements
• Designing future state processes
• Creating, documenting, and implementing internal controls over financial reporting

The project was challenging, as unique processes and controls were needed to address the nuances of cryptocurrency and blockchain technology.

Through the team’s efforts, the client was able to integrate the acquiree’s financial reporting with the parent company and implement internal controls over financial reporting that were compliant with SOX 404 requirements. The project deliverables included a detailed assessment of the client’s financial reporting processes and IT general controls, a gap analysis report that identified areas for improvement, enhanced internal controls, and a roadmap for implementing future changes.

Elizabeth’s leadership and guidance helped the client with successfully navigating the complex requirements of SOX 404 compliance, and they were able to achieve their goals of becoming fully compliant with the regulations.

Note: This work was performed prior to joining Stout.