Client background and need

The electric vehicle (EV) manufacturer faced challenges related to internal control material weaknesses that posed risks to their overall operations. These weaknesses needed immediate attention to ensure regulatory compliance, data security and financial integrity.

Baker Tilly's solution-driven approach

Baker Tilly engaged with the EV manufacturer to conduct a thorough assessment of their internal control framework. This involved a comprehensive review of existing processes, identification of material weaknesses and an evaluation of the impact on the organization's overall performance.

Baker Tilly completed the following key steps:

• Gap analysis: Baker Tilly conducted a detailed gap analysis to identify discrepancies between existing internal controls and SOX 404 requirements. This step allowed for a clear understanding of areas that required remediation.
• Customized remediation plan: Based on the gap analysis, Baker Tilly developed a customized remediation plan tailored to the specific needs and challenges faced by the EV manufacturer. This plan outlined actionable steps to address material weaknesses systematically. Remediation was verified through a rigorous test of design.
• Technology integration: Recognizing the importance of technology in strengthening internal controls, Baker Tilly recommended steps to automate processes and enhance monitoring capabilities.
• Training and capacity building: A crucial aspect of the remediation process involved training the internal teams on the revised control measures and fostering a culture of compliance. Workshops and training sessions were conducted to empower employees with the knowledge and skills needed for effective control implementation.

The accomplished results

The collaborative efforts of Baker Tilly and the EV manufacturer yielded significant results:

• Material weakness mitigation: The identified material weaknesses were successfully addressed and verified through the test of design, significantly reducing the associated risks.
• Enhanced compliance: The remediation efforts resulted in improved compliance with regulatory requirements, safeguarding the organization against potential penalties and will contribute to overall cost savings in the future.
• Positive organizational impact: The project not only rectified internal control issues but also fostered a culture of accountability and compliance within the organization.