Sarbanes-Oxley seminar:

Computer-assisted techniques for making Internal Audit the hub for continuous compliance assurance.

 

Your opportunity to

Learn about the events leading up to Sarbanes-Oxley Act of 2002

Learn about the requirements of the Sarbanes-Oxley Act

Learn how Internal Audit can be the hub for continuous monitoring and assurance

Learn how Microsoft Access can be used to monitor and record compliance

 

Calling all

Chief Audit Executives who want to demonstrate the importance of Internal Audit

Audit committee members wanting to diligently comply with their responsibilities

Senior auditors that might be responsible for executing the monitoring and recording computer-assisted technologies.

 

Microsoft Access

The seminar will assume some familiarity with the concepts of database queries and tables in Microsoft Access.  This can easily be achieved by working through Using Microsoft Access for Data Analysis and Interrogation (Chapters 1 to 4 only) by Mark J. Nigrini.

 

Content focus

The seminar will focus on those parts of the Sarbanes-Oxley Act that are most susceptible to compliance monitoring and compliance assurance by Internal Auditors.  Items outside the scope of Internal Audit (e.g., conflict of interest rules for securities analysts) will be only briefly covered.

 

Seminar Outline

 

Introduction

A review of the events leading up to Sarbanes-Oxley Act of 2002

 

The Major Players

A discussion of the persons and entities most affected by the legislation.

A discussion of what is new under Sarbanes-Oxley and what will stay the same.

 

Internal Audit

A discussion of those areas in which Internal Audit can and should play a role in ensuring compliance and in monitoring compliance.

 

Computer-Assisted Audit Techniques to test compliance

Tests that Internal Audit can perform using the computer (Microsoft Access and corporate databases) to ensure compliance.  Examples include,

 

ü      Identifying members of management and principal stockholders affected by Section 403 disclosures of designated transactions,

ü      Querying stock transactions during blackout periods to ensure that Section 306 is not contravened,

ü      Querying loan transactions to ensure that the Section 402 (a) personal loans to executives is not breached, except where specifically allowed, and

ü      Querying payments to auditors to ensure that the 5 percent non-audit work allowance per Section 201 has not been breached.

 

Computer-Assisted Audit Techniques to assure compliance

Tests that Internal Audit can perform using the computer (Microsoft Access and corporate databases) to assure compliance.  Examples include,

 

ü      Developing a system to monitor in real-time that the audit committee includes a financial expert (Section 407),

ü      Ensuring that the audit partner is rotated appropriately (Section 203),

ü      Ensuring that the audit committee has set up, and are following, their procedures for the receipt, retention, and treatment of complaints (section 310), and

ü      Ensuring that the corporate responsibility for financial reports certification (Section 302) has been done in accordance with requirements.

 

Management Assessment of Internal Controls

Section 404 requires each annual report to include an “internal control report.”  This report must, amongst others, contain an assessment of the internal control structure of the company.  This is an area in which Internal Audit must play a role, and in so doing, enhance its status in the eyes of management and the external auditors.

 

Concluding notes

Summary and discussion of main points.

Questions and answers.

 

 

Mark J. Nigrini

The seminar will be conducted by Mark J. Nigrini Ph.D. who promises an informative, lively, and entertaining learning experience.  He will draw extensively from his work in North America at the most innovative audit departments.  The seminar will include extensive handouts outlining the regulations and also showing how the data analysis tests can be conducted using Microsoft Access, IDEA and/or SQL.  The seminar will also show how to set up databases in Microsoft Access to record compliance, how the databases can be controlled by Internal Audit, and how users can be limited in their access to sections of the database.