Region: San Francisco
Industry: Manufacturing,Distibution
Service Line(s): Risk Management Services
Developed and implemented a complete Japanese Sarbanes-Oxley compliance program for the US and assisted with the compliance program in Japan.
“We selected AC Lordi to assist with our J-SOX compliance based on their outstanding methodology and deliverables. Not only have they delivered as promised, but they also were able to use expert contractors led by their experienced consultants to lower overall costs without compromising quality. They have been invaluable to our compliance efforts in both the U.S. and Japan.”
Ed Dunlap, Chief Financial Officer
Company Background:
Shaklee manufactures private-label personal care, nutrition, and green cleaning products, and distributes them through its website and more than 750,000 representatives in North America and Asia.
Business Challenge:
Shaklee Global Group, comprised of Shaklee Japan and Shaklee Corporation (U.S.), is publicly traded on the Japanese exchange. Beginning March 31, 2009, all companies listed on the Japanese exchange need to be compliant with the Japanese Financial Instruments and Exchange Law (J-SOX). This meant that both the U.S. and Japanese divisions of Shaklee needed to undertake a J-SOX compliance effort for their fiscal year ending March 31, 2009.
AC Lordi Consulting Solution:
AC Lordi implemented a full J-SOX compliance methodology for the U.S. division. We completed the methodology and planning including scoping and risk assessment; company level, financial process level, and information technology general control documentation; and all related control testing. We identified controls that needed enhancement or implementation, and worked closely with the CFO, Controller, and process owners to put them in place. An AC Lordi Principal accompanied the Controller to Japan where we met with Japanese management, consultants, and the external auditors, helped advise and strengthen their compliance efforts, including defining timelines and milestones, shaping the overall project plan, and delivering an observation report. We also serve as the independent internal audit function reporting to the CEO for Shaklee U.S. in order to meet this critical control mandated by J-SOX.
Value Delivered:
Management was able to rely on AC Lordi to manage all compliance efforts in the U.S., coordinate with their external auditors (Ernst & Young), and help strengthen and plan the compliance efforts in Japan. In addition to providing the company with strong corporate governance and control, we have helped them ensure they are on-track to be fully compliant in both the US and Japan including completing and filing all necessary reports on time.