This course provides an overview of SOX Section 404 and discusses how one can effectively implement a program.
What you'll learn
Discover the requirements of Sarbanes-Oxley (SOX) Section 404.
Recognize COSO and the Internal Control Framework.
Identify SEC and PCAOB ongoing SOX 404 requirements.
Identify documentation Requirements.
Identify testing Requirements.
Define significant Deficiency and Material Weakness.
Recognize PCAOB 2012 Report on Public Companies ICFR.
Requirements
Exposure to Sarbanes-Oxley (SOX) will be helpful.
Description
The most contentious aspect of SOX is Section 404, which requires management and the external auditor to report on the adequacy of the company's internal controls over financial reporting (ICFR). This is the most costly aspect of the legislation for companies to implement, as documenting and testing important financial manual and automated controls requires enormous effort. This course provides an overview of SOX Section 404 and discusses how one can effectively implement a solid program to address the needs of Section 404.
The Public Company Accounting Oversight Board (PCAOB) approved Auditing Standard No. 5 for public accounting firms on July 25, 2007. This standard superseded Auditing Standard No. 2, the initial guidance provided in 2004. The SEC also released its interpretive guidance on June 27, 2007. These two standards together require management to
Understand the flow of transactions, including IT aspects, in sufficient detail to identify points at which a misstatement could arise;Evaluate company-level (entity-level) controls, which correspond to the components of the COSO framework;Perform a fraud risk assessment;Evaluate controls designed to prevent or detect fraud, including management override of controls;Evaluate controls over the period-end financial reporting process;Scale the assessment based on the size and complexity of the company;Rely on management's work based on factors such as competency, objectivity, and risk;Conclude on the adequacy of internal control over financial reporting.
Sarbanes-Oxley was passed in 2002 and year one of attestation for publically traded companies was 2004. SOX section 404 is the most prominent of the many requirements covered under the legislation.
Taking this course will prepare you to successfully address the challenges of Section 404 at your company - a high profile and critical process!If you would like Continuing Education Credit (e.g. CPE, CE, CPD, etc.) for this course, it is available if you take this course on the Illumeo dot com platform under course title: Sarbanes-Oxley (SOX) Section 404. Illumeo is certified to provide CPE in over two dozen different professional certifications covering finance, accounting, treasury, internal audit, HR, and more. However, in order to receive CPE credit the courses must be taken on an 'approved-by-the-governing-body' CPE platform, and for over two dozen corporate professional certifications, that is the Illumeo platform. Go to Illumeo dot com to learn more.
Overview
Section 1: Introduction
Lecture 1 Introduction to Sarbanes-Oxley Section 404
Lecture 2 SOX Section 404
Lecture 3 Internal Control Framework
Lecture 4 COSO 17 Principles, SEC Ongoing Requirements, and Relevant Assertions
Lecture 5 Accounting Risk Assessment
Lecture 6 Risk Characteristics, Scoring Models, and Summary
Lecture 7 SOX Documentation Requirements
Lecture 8 Process Flows, Documentation Requirements, and Identifying Control Types
Lecture 9 Documention: Non-Routine & Estimates, Process Documentation, Overview
Lecture 10 Testing Requirements
Lecture 11 Materiality Discussion
Lecture 12 PCAOB December 2012 Report on ICFR and Summary 404
Section 2: Supporting Materials
Lecture 13 Slides: Sox 404
Lecture 14 Sox 404 Glossary/Index
Section 3: Review and Test
Anyone interested in finance, accounting, or related fields.
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