As an auditor, the ability to transcribe formalized or narrative processes into functional workflows allows you to identify potential gaps in accounting systems. These gaps can result in material audit findings necessitating changes in the company control structure.
For Milestone Two, prepare an analysis of Trinity Industries’ first year of Sarbanes–Oxley (SOX) compliance. The vice president (VP) and chief audit executive described the company as a likely candidate for a material weakness in the first year of SOX compliance. What were the elements critical to the company’s decisive success in its first year of compliance? Define a material weakness and explain the material weaknesses that are specific to Trinity. Describe the factors that made Trinity a success by illustrating the flow processes of the organization both in a narrative and process flowchart. This flowchart will be used to identify gaps and other threats to potential audit weaknesses.
Prompt
Formulate your processes into a comprehensive flowchart that will be used to identify gaps in processes and other threats to potential audit weaknesses.
Specifically, the following critical elements must be addressed:
First Year of SOX Compliance
Schultze, Ulrike
Journal of Information Technology Teaching Cases
; London
Vol. 1, Iss. 2,
(Sep 2011): 91-113. DOI:10.1057/jittc.2011.11
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