Big4Guy

Many Internal auditors I talk to these days are pushing process improvements and control efficiencies using Section 404 as a base. The Chief of Internal Audit are increasingly playing a lead role in Sarbanes Oxley compliance and including SOX scope in their annual internal audit plan. What this does is it decreases the load on the Sarbanes Oxley or compliance department in an enterprise.

Internal audit earlier was thought as a back-up function. But now IA is also getting involved in Section 404 project management as well. Atleast a lot can be achieved by the internal audit department in terms of financial statement coverage. Based on previous years findings, the audit scope can be re-allocated as to reduce the pressure in the current year. So the future of Internal Audit IA in a post SOX world is looking very bright. Both IA and the compliance departments can support each other and in turn will help reduce the testing that is required. Most compliance
directors believe that there is no point in testing the same thing twice. Internal audit and sarbanes oxley department should work in tandem which will bring out the synergies and ease out the process of statutory audit.

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