— Manufacturing Client

The client manufactures goods for some of the world’s largest retailers and brand owners. The company produces over two billion units of consumer products annually. Since the company’s founding in 1995, this single-facility manufacturer rapidly expanded. Today they employ over 3,000 and operate 17 manufacturing facilities spread across 14 locations in both Canada and the United States.

Challenges

Faced with immediate Canadian Sarbanes-Oxley Act (C-SOX) compliance requirements, the client realized they lacked the necessary internal expertise and IT infrastructure to meet the stringent demands of SOX-404 regulations.

With their business operations spanning across multiple locations and managing sensitive financial data, non-compliance was not an option. The client needed a swift and effective solution to not only meet the compliance standards but also ensure that the business continued to run smoothly during the compliance process.

Solution

Horn IT Solutions stepped in to provide a comprehensive IT Governance and Security Consulting service. We began by outlining a detailed SOX-404 compliance project, tailored specifically to the governance and technical needs of a large-scale manufacturing operation.

Our approach included:

Risk Assessment & Gap Analysis

The Horn IT team conducted an in-depth risk assessment to identify gaps in the client’s IT controls and financial reporting processes that could potentially violate SOX requirements. This analysis served as the foundation for our compliance roadmap.

Implementation of IT Governance Frameworks

The team then developed a strong IT governance framework aligned with SOX-404 regulations, incorporating best practices for managing and securing financial data. This framework was designed to be scalable, ensuring the client could maintain compliance as they continued to grow.

Security Enhancements

The team then implemented robust security controls to safeguard sensitive financial data, ensuring that information integrity and confidentiality were maintained across all 17 manufacturing facilities. These controls covered network security, data encryption, and access management.

Automation of Financial Reporting

To meet the requirements of SOX-404, we automated key financial reporting processes, reducing the risk of human error and enabling real-time monitoring of financial data. This also made it easier for the client to generate accurate audit trails required for compliance audits.

Ongoing Monitoring & Maintenance

Post-implementation, we established a continuous monitoring system to ensure that the client’s IT infrastructure would remain compliant with evolving SOX regulations. This included regular audits and updates to the governance framework to keep pace with regulatory changes.

Results

Horn IT Solutions successfully implemented the C-SOX compliance project, delivering results that were:

• Under-time – Despite the complexity of the project, we completed the implementation ahead of schedule, allowing the client to meet the looming compliance deadlines with time to spare.
• Under-budget – By optimizing resources and using our expertise to avoid unnecessary delays, we were able to complete the project within the client’s budget constraints, providing cost-effective solutions without compromising quality.
• Above-standard – The client not only met the C-SOX compliance requirements but also exceeded industry standards for IT governance and security, positioning them for future growth and regulatory compliance. The enhanced security measures and automation processes provided long-term benefits, streamlining financial reporting and minimizing the risk of non-compliance.

By partnering with Horn IT Solutions, the client was able to focus on what they do best—manufacturing high-quality consumer products—while trusting us to handle the complexities of compliance. This successful engagement underscores Horn IT’s commitment to delivering tailored IT solutions that empower businesses to thrive in a regulated environment.

Conclusions

Achieving compliance with the Canadian Sarbanes-Oxley Act is no small feat, especially for a rapidly growing manufacturing company with operations spanning two countries. With Horn IT Solutions’ guidance, this client not only met their compliance goals but also improved their overall IT governance and security posture. Our team’s expertise in IT governance, risk management, and compliance ensured a seamless implementation that was both efficient and effective.

If your organization is facing similar challenges, whether in manufacturing or any other industry, Horn IT Solutions can help you navigate the complexities of IT compliance while keeping your business running smoothly.