Sarbanes-Oxley contains a number of sections related to
internal controls. Quarterly certifications of disclosure controls and procedures are mandated by Section 302. Section 404 goes further, requiring management to annually assert that the internal controls over financial reporting are effective. Section 404 also requires that a company’s independent auditor issue a report that attests to management’s assertion on the effectiveness of the internal controls.
Clearly, the advantages of
having a strong internal control structure in place are many. Internal controls,
financial transparency and auditor independence can provide early awareness of
potential fraud and are an asset to any business. Our Internal Audit Service approach is designed to support the internal control and financial statement
assertions required by the Sarbanes - Oxley Act. We work with Public Companies to develop the
documentation and evaluation of their systems of internal controls, working
towards compliance with Section 404 of Sarbanes - Oxley.
The
assessment describes each functional area within the organization and identifies
potential exposure to operational and financial risks. We analyze the
staff, the process and the internal controls of each area. Our report outlines
the audit steps performed, describes the findings, makes recommendations to
implement or correct a control step and includes management’s response to the
comments.
