In order for Sarbanes-Oxley projects to be appropriately focused and successful, organizations must gain an understanding of business process that drive the financial statements and the internal controls help to ensure integrity. While different approaches can be taken, this understanding must be documented.
Documentation efforts require a complete understanding and examination of a business’ processes and related internal controls. The objectives of this evaluation include:
- Understanding how a company’s financial statements are created.
- Identifying potential sources of risk.
- Identifying and evaluating the design of internal controls to mitigate risk and ensure the integrity of these processes.
Businesses often realize other benefits from this effort by identifying opportunities to make processes and internal controls more efficient and effective. Companies typically have opportunities to create greater consistency and clarity, reduce complexity, automate manual activities, and to implement real-time and continuous monitoring systems. Realizing value from this effort is a key element of our approach to service delivery.
Who needs
these services? 
- A company does not have specific knowledge or expertise in understanding how to establish a Sarbanes-Oxley testing program.
- There is often a peak period when documentation activities occur. We are often hired to supplement staffing levels to help during these peak periods.
- Companies looking for assistance with documenting efforts in international locations, particularly where English is not the native language. We have had a number of successful engagements where we have provided local resources through our Moore Stephens affiliation.
- Companies often outsource their documentation efforts so they can focus on their core competencies.
- Companies seeking to receive feedback on ways to improve their business processes and internal controls in order to take advantage of leading practices being implemented by other companies.
These services are also needed when businesses undergo significant changes (e.g., implementation of new systems or processes, organization changes), to help ensure documentation is up-to-date and controls are appropriate for the new environment.
What is the process?
Our approach to documentation leverages the experiences our auditors have gained from performing these services for other companies and our knowledge of internal control concepts and leading practices. Our comprehensive methodology enables us to provide realistic solutions for improving efficiency of current processes as well as develop frameworks for establishing and maintaining compliance with both business and regulatory requirements.
Our documentation process is typically comprised of the following activities:
- Conducting entity-wide risk assessment and identification and evaluation of controls.
- Identification of business processes.
- Map financial statements and related assertions to business processes.
- Identify in-scope versus out-of-scope locations/processes.
- Document business processes and related controls.
- Develop process-level, financial reporting control objectives and risks.
- Document internal controls satisfying control objectives and risks.
- Validate with process owners and management.
- Evaluate internal control design and document gaps.
- Identify process improvement opportunities.
- Evaluate risk and prioritize internal control gaps.
- Present final results to process owners and management.
Why should I engage Brown
Smith Wallace?
We are committed to providing the highest level of service possible, which means we work very closely with you and apply the latest risk management techniques to your situation.
Extensive experience, paired with our acumen for identifying hidden value allows us to make A Measurable Difference™™ for each and every one of our clients. Our services are designed to meet your business’ specific needs relative to your goals and budget, and provide peace of mind about regulatory compliance.
The Brown Smith Wallace advantage includes:
- A cost effective method for managing your Sarbanes-Oxley project.
- A successful track record of managing projects within budget and helping organizations to regain control of their Sarbanes-Oxley projects.
- Significant Sarbanes-Oxley, internal control and industry knowledge and experience.
- A commitment to communication and knowledge transfer.
- National and international reach.
- A high caliber of professionals at competitive fees.
What else should I consider?
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