SOX Professionals Group

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  • 1.  Walkthroughs and Testing Timelines - External Auditors

    Posted 04-20-2023 01:57 PM

     Hello,

    Question for the group, when does your external auditors come in to perform SOX testing?  We are a large non-accelerated filer.  Also, does your company experience double walkthroughs - one with your SOX department and then again with the external auditors?



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    Rena Harris
    SOX Compliance Manager
    Investar Bank
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  • 2.  RE: Walkthroughs and Testing Timelines - External Auditors

    Posted 04-21-2023 10:48 AM

    Hi Rena,
    My current company is an accelerated filer, but still under the protection of Emerging Growth Company - so we are not technically SOX until 1/1/2024. Our external auditors review interim work in September/October to do walkthrough discussions for any changes and get a feel for any early issues and then in January/February to do their substantive testing.  Historically we have done double walkthroughs but that is changing. I am doing walkthroughs in May, and documenting a test of one for every control within our Workiva tool. Our external auditors can review and if they need more information we will have focused conversations with business owners - but not a full walkthrough cycle.

    My last company is a large accelerated filer. We had external audit doing walkthroughs in July jointly with internal audit, and initial SOX control testing in August. Then they did substantive testing in January. They relied on very little testing by our IA group.  I hope that is helpful.



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    Amanda Nino
    VP/Internal Control Manager
    Coastal Community Bank
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    Original Message


  • 3.  RE: Walkthroughs and Testing Timelines - External Auditors

    Posted 04-21-2023 11:12 AM

    Thanks Amanda!  This helps.   Currently Internal Audit performs our testing and I am responsible for everything else.  I will continue to work on having our external auditors perform joint walkthroughs.

    My last company is a large accelerated filer and external audit did joint walkthroughs with the SOX team.  I think this way is much more effective and efficient.




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    Rena Harris
    SOX Compliance Manager
    Investar Bank
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    Original Message


  • 4.  RE: Walkthroughs and Testing Timelines - External Auditors

    Posted 02-28-2024 02:59 PM

    Late to the party, but thought I'd share some of the best practices I've implemented. Typically, we like our external auditors (EA) to begin the procedures in May. That would be when they kick off walkthroughs and tests of design (TOD). The walkthroughs are attended by all groups, IA, EA, and SOX. At that point in time, any needed changes to narratives, process flows, etc., would be captured and triaged by the SOX team. OE testing would come right after TOD, typically kicked off during June/July for interim testing, and so on.

    Hope that helps.



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    Raymond Rengifo
    Director - SOX Compliance
    Tredegar Corporation
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    Original Message


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