Meeting the requirements of Sarbanes-Oxley
Audits of Internal Control over Financial Reporting
Our integrated audits for publicly traded companies include the audit of internal control over financial reporting, as required by the Sarbanes-Oxley Act of 2002. We have the capacity and expertise to:
- assist management on an advisory basis to comply with SOX in accordance with SEC guidance
- perform integrated audit engagements that include an audit of internal control that is in compliance with PCAOB Auditing Standard No. 5
Our audit of internal control over financial reporting will include a top-down risk assessment that will evaluate the “tone at the top” and the organization’s entity-level controls. Our testing procedures for operating effectiveness will incorporate the relevant assertions and the testing process will include:
- inquiry
- observation
- inspection of documents
- walkthroughs
Scaling the audit to provide just what you need
If management’s assessment of internal controls has been prepared with objectivity and a high level of competence, we will place some reliance on management’s testing and scale our audit procedures accordingly, resulting in a less expensive audit engagement. An effectively designed internal control system that is operating as designed can result in reduced substantive testing.
We generally perform the risk assessment and the first round of testing before the end of the fiscal year. This provides our clients with a preliminary assessment of their internal control system and it allows them to mitigate any deficiencies before the year ends. This decreases the likelihood that a material weakness will be present at year-end.
EFP Rotenberg, LLP is registered with the Public Company Accounting Oversight Board (PCAOB) and subject to the peer review inspection process as mandated by the U.S. Securities and Exchange Commission.