Website design By BotEap.comCompanies listed on the New York Stock Exchange had to have an internal audit department ready by October 31 to ensure that the new chief audit officers could assess the scope of their departments’ work, as well as how to comply with the new Sarbanes Oxley laws. They had to hire new managers and prepare an audit plan due to provisions of the Sarbanes Oxley Act passed in 2002. The companies had to hire staff, budget the new department, determine how they will document compliance, and how much work to assign the audit department. The Sarbanes Oxley Act of 2002 has created a revolutionary change in corporate governance as well as internal control for companies listed on the New York Stock Exchange. This Law was approved to control fraud and provide reliability to financial reports.

Website design By BotEap.comThe law required NYSE-listed companies to determine financial reporting risks, devise ways to manage risks, address issues that create those risks, analyze the effectiveness of control measures taken, retest, and retest. keep record.

Website design By BotEap.comThe Sarbanes Oxley Act had a profound impact on internal auditors, who with their expertise in business process analysis, financial risk management, and operational control testing, were suddenly in high demand and every company seemed to need their services. Therefore, in addition to their normal duties, auditors found that they were spending more and more time trying to comply with Sarbanes-Oxley provisions. Companies that have wisely and correctly used the experience of auditors have had unprecedented success, as they provide valuable guidance in various aspects of running a company, such as risk management, prioritization of objectives, optimization of operations, forms of devices to reduce operating costs, helps the company to obtain the maximum tax. benefits etc

Website design By BotEap.comThe Sarbanes Oxley Act required auditors to scrutinize financial reports carefully, as the consequences of misreporting them were severe. The General Manager of the companies and the head of Internal Audit had to personally certify the accuracy of the financial statements.

Website design By BotEap.comSarbanes Oxley and Internal Audit:

Website design By BotEap.comSarbanes-Oxley has made it mandatory for internal audit departments to

• Be consulted regarding the internal control of the company.
• Be consulted regarding enterprise risk management strategies.
• Help the company to identify, classify and evaluate risks, eliminating risks, as well as evaluating the control methods adopted periodically.
• Recommend ways to control risks.
• Help design an internal control program for the company.
• Recommend and write procedures for the internal control of a company.
• Help maintain control repository.
• Do project managers make every effort to comply with section 404?
• Help design control effectiveness tests and help perform the test and evaluate the results.

Website design By BotEap.comThus, the law created a great demand for companies to have good internal audit departments and their expert advice. The role of auditors and internal audits in the management and direction of the company increased significantly due to the Sarbanes-Oxley Act. There are companies that offer services and products to help businesses run successfully.