Sarbanes Oxley Compliance
Articles in the "Sarbanes Oxley Compliance" Category
In a recent article, we briefly discussed external financial reports in terms of the audience, or specific users of company information. Generally, one of the most important users in the USA is the Internal Revenue Service (IRS), followed by various state and local taxing authorities. Required income tax returns can be prepared more easily from financial reports that are classified in a comparable manner. A tax practitioner is usually retained to prepare and file these returns. The reports most commonly requested of the company are the general ledger and related financial statements.
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Author: Chris Anderson Published on: June 30th, 2010
Categories: Accounting Manuals, Accounting Procedures Manuals, Financial Internal Audit
Accounting Basics
Three important terms are easily confused. They are: Bookkeeping, Accounting, and Reporting. What are they, how do they interrelate, and how do they interface with accounting policies and procedures? First, let’s define the terms.
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Author: Chris Anderson Published on: June 26th, 2010
Categories: Accounting & Internal Control, Accounting Procedures Manuals
Accounting methods and accounting standards are typically defined within your accounting manual, a key component of your accounting system. Your accounting manual defines your policies, procedures, and internal controls for Sarbanes Oxley and other compliance needs. There are two main accounting methods: accrual and cash.
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Author: Chris Anderson Published on: June 22nd, 2010
Categories: Accounting & Internal Control, Accounting Manuals, Accounting Policies, Accounting Procedures Manuals, Internal Control, Sarbanes Oxley - SOX
The financial transactions of any accounting system can be grouped into four major accounting cycles: Revenue, Purchase, Payroll, and General Journal.

Four Main Accounting Cycles
Accounting transactions in the form of sales invoices, receipts, purchase invoices, checks, and payroll entries are posted to the appropriate journals. Simultaneously — as a form of internal control — these postings are recorded in the general ledger, or “GL”. The GL accumulates all transaction activity, where it is organized by account class.
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Author: Chris Anderson Published on: June 17th, 2010
Categories: Accounting & Internal Control, Accounting Procedures Manuals, Writing Policies and Procedures
How familiar are you with the accounting rules and concepts utilized by accounting software systems? If you were more confident with the information generated by your accounting program, would it help you to use it more effectively to run your company? More importantly, do you understand how your Accounting Policies and Procedures integrate with the accounting rules and concepts to produce the internal controls you need?
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Author: Chris Anderson Published on: June 15th, 2010
Categories: Accounting & Internal Control, Accounting Procedures Manuals
Policy management provides the foundation for your Governance, Risk management, and Compliance (GRC) program. Business governance is about directing and controlling your organization. Risk management is how you handle the various risks to your company — whether you eliminate, mitigate, or accept them.
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Author: Chris Anderson Published on: April 14th, 2010
Categories: Accounting & Internal Control, Internal Control, policy procedure software
Policies and procedures need to be managed, not simply collected, as we oftentimes tend to do. Add in the offspring of policies and procedures — records — and you have the making of a problem common to business…a lack of control.
Control of records and documents is critical to compliance. ISO 9001 requires document control, record control, and specific procedures that clarify how you are maintaining control. HIPAA requires access control. Sarbanes-Oxley requires access and revision control. Document and record control are at the heart of many of the various compliance schemes businesses encounter.
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Author: Chris Anderson Published on: January 25th, 2010
Categories: Business Management & Operations, Knowledge Management, Sarbanes Oxley Compliance, policy procedure software
You’ve just been given the task of writing a new procedure that documents an existing business process. Â You make sure you understand, and you close with, “I’ll get on this process right away.”
That’s when your boss says, “Process? Did I say ‘process’? I meant processezzz! Plural!”  And before you can blurt out, “What do you mean?”, the boss says you need to develop procedures for all accounting processes, not just the one.  Oh, and he wants them by the end of the month!
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Author: Chris Anderson Published on: November 20th, 2009
Categories: Accounting Procedures Manuals, Case Studies, Writing Policies and Procedures
Writing procedures is an exercise in controlling the cost of compliance. You’re trying to comply with customer expectations, management objectives, government regulations, and/or industry standards, making compliance expensive.  Regardless of the reason for compliance, wouldn’t you want to write as few procedures as possible if you could still conform to the compliance mandate and keep your compliance costs to a minimum?
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Author: Chris Anderson Published on: November 16th, 2009
Categories: Accounting & Internal Control, ISO Quality Standards, Internal Control, Sarbanes Oxley Compliance, Writing Policies and Procedures
Small public companies like yours may finally have to begin providing the Securities and Exchange Commission (SEC) with certified assessments of their internal controls.  Smaller micro caps will be required to comply with SOX 404(b) reporting requirements beginning June 15, 2010; they’ll have to attest to the effectiveness of their internal controls in their annual reports released on or after June 15 of next year.  So, for those whose annual reports are just seven months away, the time to consider is over — it’s time to take action!
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Author: Chris Anderson Published on: November 6th, 2009
Categories: Accounting & Internal Control, Sarbanes Oxley - SOX, Sarbanes Oxley Compliance