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It is a requirement under the US stock exchange regulation to comply with SOX, hence Arch Reinsurance being a publicly held company needs to follow the act. The IT manager for Arch Reinsurance considers automation to be a successful approach towards compliance of SOX. The company hires limited staff and resources and to cover it up, proper internal controls are to be managed by the company by automating control procedures at the company. Like many other companies, Arch Reinsurance Ltd have also spent a hefty amount on SOX related compliance proposal. According to the IT manager of Arch Reinsurance Ltd, it would have been really difficult for the company to sustain SOX compliance if automation was not followed, for him; the vital area of concern was to control access to financial systems and other applications. This is done by keeping a proper log and change management system, proper record is kept of every log-in, log-out and every possible activity done by the staff in the system. Proper security is also kept to ensure that only authorized personnel get to log in to the system. A review is done by the manager and his staff of daily reports produced by the data center monitoring tools. These reports are later presented to SOX auditors during compliance testing. Like every company, Complying with SOX has been expensive and time consuming at Arch Reinsurance Ltd.
Though the staff is limited in number, the control procedures followed at the company decreases its vulnerability to internal control failures. The procedures followed are quiet extensive as the IT manager has abundant knowledge of company data center operations. The main theme is to strengthen the internal control systems by automating the procedures and activities at Arch Reinsurance Ltd.
While conducting an audit, the auditor should identify the control procedures to avoid any material
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In the US Senate, the Sarbanes Oxley Act is commonly referred to as the Public Company Accounting Reform and Investor Protection Act (Shakespeare 333). In the House, the act is commonly referred to as the Corporate and Auditing Accounting and Responsibility Act.
The Sarbanes-Oxley Act has several sections with each containing a rule of its own and effect on a corporation. Here is a summary of the main sections. Section 302 gives duty to the CEO and CFO to certify in person that financial reports are accurate and complete and are responsible for any fraud regarding such.
Additionally, this study revealed that the formation of Public Company Accounting Oversight Board (PCAOB) under the Sarbanes-Oxley Act also resulted in strengthening the regulations to a next higher level and ensuring better professional credibility thereafter.
With the advent of the Sarbanes – Oxley Act, information regarding every aspect of the business conducted by a company that influences financial performance has to be reported. This is in addition to the financial data
Some of these regulatory requirements such as state filing and fair lending laws are some of the commonly known compliance requirements that majority of businesses can relate with, having been in operation for
4 Pages(1000 words)Research Paper
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