 |
Sarbanes-Oxley News & Developments
Who Will Audit the Auditors? **Section 404 of SOX**When your accounting firm sets up software to monitor your internal controls, are you implementing solutions - or risk?
> > Scott A, Taub, the deputy chief accountant for the SEC, recently issued a caveat emptor for software marketed by accounting firms to help clients track and evaluate internal controls under Section 404 of the Sarbanes-Oxley Act.
Such applications may breach auditor independence rules if accounting firms are helping set up the control system they later evaluate. Companies and their auditors need to be mindful of those requirements - said Taub.
Several of the Big Four accounting firms, as well as technology companies and consultants, have designed or are designing software intended to help finance managers comply with Section 404 or the Act as a whole. Managers are currently bombarded with choices, but they can be thankful that the ultimate responsibility to judge auditor independence falls squarely on the audit committee.
Source: CFO article
Published:2003-07-16
|
|
