Risk management is important because it tells businesses about the threats in their operating environment and allows them to preemptively mitigate risks. In the absence of risk management, businesses could be blindsided by risks and possibly face significant losses. A properly implemented Enterprise Risk Management program supports better structure, reporting, and analysis of risks. Standardized reports that track enterprise risks can improve the focus of directors and executives by providing data that enables better risk mitigation decisions. No risk management program can get very far without an in-depth understanding of specific risks that an organization faces. That is why risk identification and assessment are important – as a way for the organization to get a handle of the universe of significant risks it faces and to determine how important each risk is to the achievement of overall goals. Although identifying and assessing risk are important, they are only the initial steps. It is rare that risk assessment projects are seen as the end of an overall Enterprise Risk Management process. For organizations to appropriately manage and mitigate their critical risks (that fall outside acceptable tolerance levels), organizations must act. An effective enterprise risk management program will also include the development of risk responses, controls, and monitoring activities. The overall risk management cycle includes the following ongoing activities: Identify the Risk Analyze the Risk Evaluate or Rank the Risk Treat the Risk Monitor and Review the Risk Conducting an enterprise–wide risk assessment brings together your organization’s key personnel to identify threats, critical risks and impacts that should be considered when pursuing the overall mission and objectives of the organization. SLK’s experienced team will work with your organization to facilitate interviews and workshops with the key individuals and departments within your organization to assist in identification, prioritization & planning of remediation activities for critical tasks.
Enterprise risk management is a domain of governance that deals with the operational, environmental, financial, regulatory, market, and other risks that affect the outlook and planning of organizations.
LerroSarbey can assist companies with implementation of SOX 404 through identification and documentation of relevant internal controls. In addition we can assist in developing and implementing test plans to determine the operating effectiveness of such controls.
A process designed by, or under the supervision of, the issuer’s principal executive and principal financial officers, or persons performing similar functions, and effected by the issuer’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Section 404 of the Sarbanes-Oxley Act states that internal control report requirement applies to most companies filing annual reports with the SEC.
Section 404 of the Sarbanes-Oxley Act requires companies to file an internal control report along with its annual report. This internal control report must confirm management’s responsibilities related to establishing and maintaining adequate internal control over financial reporting. It also specifies management’s conclusion on the effectiveness of those controls at year end.
Yes, the business use of one’s automobile may be deducted. Generally, one can deduct the business portion of actual car expenses or the standard mileage rate. The standard mileage rate for 2020 is 57.5 cents per mile. Actual car expenses that can be deducted include:
6. Lease payments
8. Garage rent
9. Parking fees
10. Registration fees
If you use your car for business and personal purposes, you must track your mileage and deduct only the business portion of actual expenses (or the standard mileage rate multiplied by business miles driven during the year).
1. One cannot deduct the cost of driving a car between your home and your main or regular place of work (commuting expenses).
2. However, if you work at 2 places in one day, you can deduct the expense of getting from one workplace to the other.
We recommend keeping a mileage and expense log to track business mileage each year.
1. One should record the odometer reading as of January 1 and December 31 each year to track total miles driven for the year.
2. The log should include the following data:
• Destination (City, Town or Area)
• Business Purpose for trip
• Odometer reading at start of trip
• Odometer reading at end of trip
• Total miles this trip
• Expenses relate to the trip (gas, oil, toll, etc.) – description and amount