Sarbanes-Oxley and Public Oversight
Sarbanes-Oxley created the SEC's Public Company Accounting
Oversight Board (PCAOB). The PCAOB notes, The internal
control environment extends to the period end financial
reporting process including the preparation of both annual
and quarterly financial statements, including controls over
procedures used to record recurring and nonrecurring
adjustments to the financial statements (for example,
consolidating adjustments, report combinations, and
reclassifications).
In May 2005, the SEC issued a statement that narrowed
Sarbanes-Oxley evaluations to those items that could
result in material errors in financial statements.
The SEC stated, While identifying control deficiencies
and significant deficiencies represents an important
component of management's assessment, the overall focus
of internal control reporting should be on those items
that could result in material errors in the financial statements.
What does this mean to you? Only your auditor can say for sure,
but it's clear that as a result of Sarbanes-Oxley, the SEC wants
you to focus on the controls related to financial statements
and to use financial statements to help assess control risk.
So lets analyze each section of Sarbanes-Oxley compliance and determine how best to address the specific requirements of them:
When you're ready to implement a long-term, strategic solution to Sarbanes-Oxley, TITAN-Pinnacle is the right choice for you...
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