Managing a cannabis company’s finances is unlike managing those of any other business we have seen before. Since marijuana is federally illegal with no government funding, it is up to the individual company and the state to take the necessary measures to ensure that these businesses are compliant.
This is in regards to a few financial components including SOX compliance. This is only applicable if you’re going public within the US; your company has to be within a certain size. We often see this with bigger companies.
Since the passing of the Sarbanes-Oxley Act (SOX) which helps protect shareholders and the general public from accounting errors and fraudulent practices in enterprises, as well as improve the accuracy of corporate disclosures, cannabis companies need to be diligent in assessing entities and controlling risks. Our cannabis SOX compliance advisors can help you evaluate the control environment and document your internal processes, policies and control measures. Further, we are able to implement controls to meet SOX and COSO 2013 requirements.