Designing Internal Control Systems

Development of Internal Control Systems for US Companies

Internal controls form the foundation of reliable risk management, fraud prevention, regulatory compliance, and financial transparency. Our legal team provides comprehensive services for developing, implementing, and improving internal control systems in accordance with US legislation, including SEC requirements, Sarbanes-Oxley Act (SOX), and COSO standards.

What's Included in Our Internal Control System Development Service

We provide both full-scope implementation from scratch and audits of existing procedures. Our legal services include:

• Assessment of existing business processes, risks, and regulatory requirements
• Development of control policies and procedures (compliance policies, access controls, document flow, verifications)
• Identification of control points and responsible personnel within company structure
• Establishment of internal reporting systems and violation response mechanisms
• Preparation for external audits and interaction with auditors (including responses to inquiries)
• Employee training on internal policy compliance

Why Legal Counsel is Essential for Internal Control Development

Lawyers ensure not just formal compliance but also protection of company interests during inspections, disputes, or regulatory claims. Qualified support:

• Reduces likelihood of fines and lawsuits
• Adapts controls to your business specifics (e.g., SaaS, retail, financial services)
• Ensures corporate governance compliance (especially for public or venture-backed companies)
• Enhances investor and partner confidence

Legal Support Process for Control System Development

Lawyers participate at every stage:

1. Risk and business structure analysis - review of company operations, ownership structure, contracts
2. Documentation preparation - drafting internal policies, control registers, reporting forms
3. Legal structuring - implementation of mandatory procedures according to industry specifics (e.g., fintech, healthcare, e-commerce)
4. Training and testing - developing instructions, system testing, incident simulations to verify effectiveness
5. Ongoing support and updates - adapting to legislative or organizational changes

Service Availability Conditions

You're planning a company IPO

• Company undergoing audit or regulatory inspection (SEC, IRS, etc.)
• Investors requiring compliance system implementation
• Need to reduce fraud risks, internal conflicts, or data leaks
• Company has international structure or operates in regulated environment