Sarbanes Oxley (SOX) Section 404

Author: Lynn Fountain

Sarbanes-Oxley was passed in 2002 and year one of attestation for publicly traded companies was 2004. Almost 20 years later the legislation continues to challenge companies, auditors and compliance professionals when evaluating a company’s control structure. SOX section 404, although the most prominent, is only one of the many requirements covered under the legislation.

In addition, the impetus of COSO 2013 has re-focused companies' efforts on evaluating their key controls. Companies must continually evaluate whether they have designed and identified the proper controls and have adequate tests in place to determine control efficiency. With the evolution of technology solutions, the impact of information systems changes must be continually evaluated to ensure controls are adequately addressed.

This Sarbanes Oxley training course is an overview of the legislation as well as the proper processes, controls and tests companies must use to determine adequate internal and financial controls. We discuss how to recognize components of SOX and the Internal Control Framework, the requirements for Top-Down Risk Assessment, as well as how to identify legislation changes and challenges, Auditing Standard 2 and Auditing Standard 5, and how to discover the SOX Sequence of process (documentation, design, evaluation).

Publication Date: February 2024

Designed For
Internal auditors, Professionals considering the role of internal audit, Chief Audit Executives Accountants and Finance professionals, CFOs, CEOs, Legal and Compliance professionals, Board members, and Audit Committee members

Topics Covered

• SOX 404 process
• Internal Control Framework requirements
• SEC Requirements
• PCAOB Requirements
• Accounting Risk Assessment
• Establishing the Methodology
• Utilizing Risk Characteristics & Assertions
• Scoring Models

Learning Objectives

• Identify the various sections of the SOX legislation
• Identify the requirements of SOX section 404
• Describe the SOX sequence of events and important components of an accounting risk assessment, process documentation, sourcing risks, documenting controls, assessing design, testing operation and reporting
• Identify the connection of SOX to the COSO Internal Control Framework

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
None

Advance Preparation
None