Sarbanes-Oxley (SOX) – Top Down Risk Assessment Part 2

Concepts for an accounting top down risk assessment can be well defined, but execution of a true top-down risk accounting risk assessment is still a challenge. The requirement of Auditing Standard 5 (AS5) to consider multiple risk factors complicates the process.  Organizations will often struggle with the best method to properly evaluate their accounts to determine those which present the potential for a material misstatement.

This course focuses on the methodology steps reviewed in Segment One of developing a top-down risk assessment.  We delve further into understanding how to examine entity-level controls and their importance on determining account significance.  We review the steps outlined in Segment One and apply those steps towards two separate scenarios.  This allows the participant to think through the process and application and to examine how a scoring methodology may be beneficial within their individual process.

Information within this course comes from readily available public domain documents and is utilized by the trainer as a supplement for relaying the course content.

Note: The concepts outlined in this course are up to date and relevant in regards to the Sarbanes-Oxley legislation. Although there have not been any changes in the legislative concepts of the law since it’s release in 2002, some aspects of executing the work have evolved. This speaker is preparing a series of courses titled “Sarbanes-Oxley 20 years later”. Those courses can be found individually on the platform and would be beneficial for anyone involved with compliance.

NOTE: The Instructor has created 5 new segments on Sarbanes-Oxley Update – 20 Years Later:

Sarbanes-Oxley Update – 20 Years Later: Accounting Risk Assessment Considerations
Sarbanes-Oxley Update – 20 Years Later: Sourcing Emerging Risks Part 1
Sarbanes-Oxley Update – 20 Years Later: Evaluating Testing Processes
Sarbanes-Oxley Update – 20 Years Later: Sourcing Emerging Risks Part 2
Sarbanes-Oxley Update – 20 Years Later: Examining Fraud Risks