SOX 404 Internal Control and AS2 Audit Reforms

Understand the Impact; Implement New Compliance Standards Now

Recording of a 100-minute CPE webinar with Q&A

Conducted on Wednesday, June 27, 2007

Program Materials

Description

Just recently, at the end of May, the SEC and Public Company Accounting Oversight Board announced new standards for inspecting controls for financial reporting.

On May 23, the SEC voted to relax the standards for public companies to comply with Sect. 404 of the Sarbanes-Oxley Act of 2002, so that their management could focus on those internal controls posing "a reasonable possibility" of leading to errors on financial statements.

Meanwhile, on May 24, the PCAOB decided to scrap its controversial Auditing Standard No. 2 with a new Auditing Standard No. 5. Assuming SEC approval in the coming weeks, the rigid, checklist-style AS2 gives way to a much shorter, more principles-based rule for how outside auditors should inspect clients' controls and SOX 404 compliance.

Companies of all sizes will need to alter their reviews this year to meet the SEC's new Sect. 404 guidance, so that their 2008 annual reports reflect the changes. In other words, there won't be any further compliance extensions for smaller companies, i.e. those with market capitalizations of $75 million or less.

Meanwhile, auditors will have to start following a new "material weakness" definition during a transition period. And, they could opt to comply with the new AS5 as early as November.

Listen as our authoritative panel of accounting profession experts gets you prepared immediately to thrive under the new SEC and PCAOB standards.

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Benefits

They'll discuss how to move your accounting firm or company into the new environment by:

  • Taking a top-down, risk-based audit approach and getting away from opining on the adequacy of company management's process of evaluating controls.
  • Focusing on the objectives for stopping fraud, not the mechanics.
  • Establishing which of a company's geographic locations presents the greatest risks to financial statements.

Faculty

John Fodera
John Fodera
Director in the Internal Audit and Risk Management Services Group
Eisner

He has more than 20 years of audit and business management service, and conducts training classes on SOX 404...  |  Read More

Eric Miles
Eric Miles
Quality Assurance Coordinator for SOX 404 Compliance
Moss Adams

He's a senior manager for internal audits with the firm's business risk management and control group.

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Craig Crawford
Craig Crawford
audit Partner and Partner-In-Dharge of the Professional Practice Department
KPMG

He's in charge of monitoring standard-setting for the firm and is a member of the AICPA's Auditing Standards Board.

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