Posted on Jul 21, 2011

I'm curious — how many internal audit departments are still devoting time to U.S. Sarbanes-Oxley Act of 2002 testing? I'm guessing this is pretty routine by now. Testing starts by identifying the material accounts or processes, maybe even with a risk assumption for susceptibility to understatement (liabilities), theft (cash and receivables), or a high degree of estimation (inventory obsolescence, bad debt). The process is all very well documented, the templates are pretty, and there's nowhere near the drama of the early years, before the U.S. Public Company Accounting Oversight Board's Auditing Standard No. 5.

continue reading...