Region: Philadelphia
Industry: Pharmaceutical,Life Sciences,Healthcare
Service Line(s): Risk Management Services
Performed risk assessments, formalized compliance approach, and implemented testing strategy.
Company Background:
Cephalon is an international biopharmaceutical company that develops and markets innovative products to treat neurological and sleep disorders, cancer and pain.
Business Challenge:
Cepahlon required assistance streamlining and optimizing its mature Sarbanes-Oxley compliance effort which had entered its fourth year.
AC Lordi Consulting Solution:
AC Lordi set about completely revamping Cephalon’s Sarbanes-Oxley compliance methodology and policies, formally documenting them for the first time. We interviewed key management and performed detailed risk assessments on balances, assertions, processes, and controls. We implemented a controls testing strategy that documented the testing approach including timing, nature and extent of testing, leading to a reduction in planned testing hours and sample sizes. We provided recommendations for reducing and standardizing controls globally, and streamlined and upgraded Entity Level Controls for compliance with COSO’s Internal Control over Financial Reporting – Guidance for Smaller Public Companies.
Value Delivered:
Through our top-down, risk-based approach, AC Lordi created significant efficiencies, cutting down on testing time and volume, formally documenting policies and procedures, and reducing overall workload while still remaining in compliance. Our implementation of a concise, worldwide standardized control program allowed the company to cut, reduce, or consolidate controls and take advantage of greater efficiencies. AC Lordi continues to provide Cephalon with ongoing accounting services, including interpreting and implementing new accounting pronouncements and supporting their SEC reporting efforts by reviewing 10Qs and completing footnotes.