Internal Control at Private Companies and Nonprofits

Using SOX to Your Advantage

Chris Jeffrey, CPA

Should the Sarbanes-Oxley Act (SOX) be applied to a private company? What about SOX at a nonprofit? Over the past few years, it has become evident that the strong corporate governance and systems of internal controls put in place by SOX are here to stay. It has become clear, through the actions of regulators, the market, and individual companies, that an active and vigilant board of directors, an effective system of internal controls, and a control-conscious environment are essential to the viability and health of any organization or institution, whether publicly traded, privately held, operating as a nonprofit, or located domestically or internationally.