Linking the SOX Compliance Process to the PCAOB's Audit Standard Number 5 to Maximize Compliance Effectiveness

Companies can now take advantage of the information provided in the standard to achieve cost-effective and sustainable SOx compliance.This new standard suggests that the external auditor may rely on the work of ‘others' including the regulated company's personnel, in their assessment.The Public Company Accounting Oversight Board (PCAOB) oversees the activities of public accounting firms when assessing and vetting management's company statement of internal control for public companies that are obligated to meet the SOX Act. In this connection, PCAOB issued audit standards to guide accounting firms in the proper conduct of SOX related audits. This implies that, through vetting of the status of internal control, the independent auditor ultimately determines whether a public company is compliant with SOX requirements and opines on the adequacy of a company's internal controls in support of the integrity of the financial statements.

PCAOB's Audit Standard No 2 has recently replaced by the Audit Standard Number 5 which takes into account the challenges of small and medium businesses (SMBs) in meeting SOX compliance. PCAOB's Standard No. 5 suggests that the external auditor may rely on the work of ‘others' including the regulated company's personnel, in their assessment. This impacts the extent of testing of their clients' internal control systems. This can not only make it easier for a company to satisfy compliance buy also derive savings from reducing the extent of independent assessment and testing effort that the external auditor must conduct to arrive at their opinion.

This webinar provides fundamental background on PCAOB's Standard No 5. Next, it focuses on how companies can take advantage of the information provided in the standard to achieve cost-effective and sustainable SOX compliance.

Areas Covered in the seminar:

• Should SOX compliance encompass more than just the internal view of internal control adequacy to support financial reporting?
• Fundamental concepts of the PCAOB's audit standards 5 and implications to the SOX compliance process.
• Maximizing the effectiveness of compliance by linking PCAOB's Audit Standards 5 guide for independent auditors.
• How considering the independent auditor's needs and PCAOB's Audit Standards 5 facilitates the vetting process and saves auditors' vetting costs?
• Key considerations for linking the SOX audit process to the PCAOB's audit Guide 5.
• Questions and Answers

This webinar is based on consulting experience assisting companies in developing frameworks for SOX compliance and corporate governance. It will provide you with valuable knowledge to assist you in developing a more effective SOX compliance program that is more in sync with the requirements of the external auditors that are instrumental in vetting a company’s internal control adequacy to meet SOX mandates. It will contribute to develop effective and sustainable compliance programs that are in sync with the view of the external auditor.