Sarbanes Oxley (SOX) Compliance and QAD
Posted on: September 8, 2008 | By: SuperUser Account | QAD Financials
Remember, SOX was authorized because a perception existed and still exists that Public Companies failed to properly exercise appropriate corporate governance which in turn led to fraudulent activities at certain public companies.
The Focus of the SOX Law is on Sections 302 and 404, Below is a list of significant bullets pertaining to the law.
- Section 302 specifies the CEO and CFO must personally certify they are responsible for internal controls’ and procedures’ design, effectiveness, conclusions, and disclosure
- They must disclose significant control changes, deficiencies, weaknesses, and fraud to their audit committee and external auditors
- Section 404 mandates that management evaluate and opine on their internal controls in their annual report
- The independent auditor must attest to management’s assessment of the effectiveness of financial reporting internal controls and procedures
- Management’s responsibility for establishing and maintaining internal controls and procedures for financial reporting
- Management’s conclusions as to the effectiveness of the internal controls and procedures for financial reporting
- A statement identifying the framework used by management to evaluate the effectiveness of internal controls
- A statement that independent auditors have issued a separate report attesting to management’s assertions
Insuring a strong compliance business model to support SOX compliance should include QAD’s Enhanced Controls or other database auditing tools.
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Principal, Logan Consulting
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