Presentation Date: Sunday August 2, 2009
  Presentation Time: 8:00 am-4:30 pm

CPE Session 17

SOX Section 404 Control Testing

Presented By:

Sanjay Anand, SOX Institute

Description: Entity-level and activity-level control testing, including an overview of audit and testing techniques; auditing control effectiveness; assessing the adequacy of control design; activity-level operating effectiveness; and documenting test procedures and results.

Content: Using control documentation to identify appropriate tests of controls for both entity- and activity-level controls; using top-down risk-based approach from PCAOB's Auditing Standard 5 to specify the scope of testing; using entity level techniques such as document review, IT General Controls, management inquiry and employee surveys; using activity-level tests as part of a risk-control-matrix in accordance with COSO/ERM components.

Objectives: Effective SOX Section 404 testing for entity- and activity-level controls so as to achieve cost-effective compliance. Preparation for independent (external) audit. PCAOB's AS 5.

Field of Study: Accounting
Program Level: Basic

Intended Audience: Accounting, Auditing and Finance professionals with some familiarity of Internal Controls but not necessary extensive expertise in Internal Controls over Financial Reporting (Sarbanes-Oxley Section 404). Those looking to gain familiarity with Sarbanes-Oxley and to relate it to tools, techniques and methodologies they are already familiar with.

Format/Structure: Interactive, case-study driven workshop that builds upon documentation created as part of SOX Section 404 Documentation workshop. Broken out into easy-to-digest chunks, the day is interspersed with exercises that build upon one another to create the completed test plans and test strategies. Test results are obtained via the interactive classroom environment and the data and information provided to the attendees.

Learning Objective: Create test plans and test strategies for: - entity-level control testing - activity-level control testing - IT/automation control testing Incorporate tests into risk-control-matrices for testing control effectiveness: - design effectiveness - operating effectiveness - monitoring effectiveness

Prerequisites: SOX Section 404 Documentation (previous class)

Advanced Preparation Required: Familiarity with COSO gained in previous class.

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