Data Reconciliation and SOX Compliance

Verasset has just completed a physical inventory and reconciliation project for a 125 year old manufacturing company.

The company is publicly held and is required to conduct a physical inventory every 3 years in order to be compliant with the Sarbanes-Oxley Act (SOX). SOX compliance also requires that the companies finance officers and auditors sign off on the accuracy of their balance sheet. The companies balance sheet reflected hundreds of millions of dollars in fixed assets.

Verasset completed the inventory in 5 days and conducted a book to floor reconciliation over the next 2 weeks following the inventory.

The in-depth analysis found that the company had a large number of “ghost assets”, or assets that have been disposed of, but remain on their Fixed Asset Register (FAR) and balance sheet. This is a common problem found within large organizations.

During the inventory, Verasset applied barcode labels to their assets and has provided the company with a comprehensive inventory listing including the location and condition of the assets they do have.