SOX 404: Mastering the ICFR Evaluation Process

CPE Credits:

Program Level:

Overview

Prerequisites:

exp

Learning Objective: To provide an understanding of the internal control reporting requirements of Sarbanes-Oxley Section 404.

Review the SEC's Management Guidance and PCAOB's Audit Standard 5
Understand how to use the COSO framework in the evaluation process
Learn how entity level controls impact the process

Learn how to optimize your control effectiveness testing
Understand how to re-evaluate scoping and testing decisions
Review when to use walk-throughs and related procedures

Date	City	Register
May 16, 2012	Dallas, TX	Register

Agenda

Day 1
8:00 - 8:30 a.m.	Registration/Continental Breakfast
8:30 - 8:45 a.m.	Workshop Overview – The State of the 404 Process Workshop schedule, administrative matters and introductions Overview areas for improvement
8:45 - 9:15 a.m.	The SOX Process Today Structure of the SOX process as it should be SEC management guidance process PCAOB Audit Standard 5 process How does the guidance compare to your process?
9:15 -11:00 a.m.	The SEC's New Guidance for Management Two basic principles Structure of the process The three levels of entity level controls Where can entity level controls be used to reduce process level testing Identifying financial reporting risks What is a material weakness? Issues in scoping Identifying controls that address financial reporting risks Design effectiveness evaluation Operating effectiveness evaluation
11:00 - Noon	The PCAOB's New Audit Standard 5 Overview of the auditor's SOX 404 process "Top-down" now required by AS 5 Entity level control issues Starting with the financial statements The new definition of significant account Is process documentation required? Testing issues Refining sample size decisions Maximizing efficiency of testing by finding opportunities to combine walkthroughs, design effectiveness and operating effectiveness testing Maximizing efficiency in testing controls with multiple objective tests Making more efficient sample size decisions Timing your testing to make remediation efforts on a timely basis
Noon - 1:00 p.m.	Lunch
1:00 - 2:00 p.m.	Dealing Effectively with IT Issues Determining which IT general controls to document and test Issues in hard-to-obtain SAS 70 service organization reports Effective documentation of IT application controls in process documentation
2:00 - 3:00 p.m.	SOX as it Exists versus the New Guidance Adjusting testing to identify only material weaknesses Operational control issues Entity level controls – when could they be enough? Could you reduce some process level documentation?
3:00 - 4:00 p.m.	Summary of Areas for Change Focus on material weakness issues Eliminating operational control issues Identifying financial reporting risks Using entity level controls Reducing "significant accounts" Testing effectively Self assessment and other testing regimens
4:00 - 4:15 p.m.	Material Weakness and Other Reporting Issues The large CPA firm's "Framework" document for analyzing control deficiencies – adapting for the new definitions Reporting the remediation of material weaknesses and AS 4 When must changes in internal control be reported in Form 10-Q and 10-K? The requirement for "robust" disclosure of material weaknesses Tips for writing a clearer, more effective report
4:15 - 4:30 p.m.	Questions and Answers Getting benefit and building lasting value from establishing and improving internal control Should you use the COSO's Enterprise Risk Management Framework? Benchmarking, what cost information is available? Averages per company? What is the market impact of reporting material weaknesses? Learning curves - getting better each time Avoiding mistakes from earlier years COSO's new "Implementing the COSO Control Framework in Smaller Businesses"

Date	City	Register
May 16, 2012	Dallas, TX	Register

Share This Course

Year after year, an excellent program. I expect to attend this program every year until I retire!

Pamela B. Bruno Vice President, Controller & CAO BNP Residential Properties, Inc. Charlotte, NC

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