1. Depositing cash and reconciling bank statements
2. Approving time cards and distributing paychecks
3. Preparing an order and changing a billing document
4. Changing an order and creating a delivery
5. Creating a journal entry and opening a closed accounting period
6. Creating general ledger accounts and posting journal entries
7. Maintaining accounts receivable master data and posting receipts
8. Maintaining bank account information and posting payments
9. Maintaining assets and creating a goods receipt (more…)
Popularity: 19% [?]
1. A better control environment, where executives set the tone for ethical behavior and employees follow suit
2. Facing the mountain of documentation required by SOX means making improvements to procedures and employees’ understanding of these procedures
3. The Audit Committee takes its role seriously
4. Functions converge, processes become streamlined and standardized
5. The reduction of needless complexity (more…)
Popularity: 13% [?]
To date, the PCAOB and external auditors reviewing compliance with Sarbanes-Oxley have been attentive primarily to security, change management, and problem management. A key focus for the audit is integrity of the technology infrastructure for processing, storage, and communication of financial data. This is especially true when financial reports are generated from a data warehouse fed by multiple accounting and business operation systems.
Ownership of IT controls may be unclear, especially for application controls. Therefore, the audit in each area must integrate automated and manual controls at the business-process level. (more…)
Popularity: 16% [?]
302: The CEO and CFO are directly responsible for the accuracy, documentation, and submission of all financial reports, as well as the internal control structure to the SEC.
(Translation: The CEO and CFO are on the hook for making sure the company’s financial reports sent to the US Securities and Exchange Commission are right. We talk more about Section 302 in a bit.)
401: Financial statements must be accurate, without any incorrect information, and include all off-balance sheet liabilities, obligations, or requirements.
(Translation: It is no longer possible for companies to hide any information that might affect their share price if it became common knowledge. They must present their true face to the world, warts and all.) (more…)
Popularity: 21% [?]
For most organizations, IT services are now a vital part of the financial reporting process. The applications and services support creation, storage, processing, and reporting of financial transactions. Therefore, Sarbanes-Oxley compliance also must include controls for the use of technology in data handling, processing, and reporting. General computing controls thus are critical to the overall financial reporting process in ensuring data integrity and secure operations. IT departments now must formally address the design, documentation, implementation, testing, monitoring, and maintaining of IT internal controls.
The CEOs and CFOs look to the information services department to ensure that the general and specific internal controls for all applications, data, networking, contracts, licenses, telecommunications, and physical environment are documented and effective. Overall risk and control considerations are assessed at the departmental level of information services and then at the entity level. Entity-level review may vary depending on the following questions: (more…)
Popularity: 10% [?]