Section 404 of the Sarbanes-Oxley Act (SOX) is legislation passed by the United States Congress which requires management, company boards and public accounting firms to file an internal control report with its annual report. This process flow documents a high-level methodology for SOX compliance.
Process steps outlined in this sample process flow include:
This document should be used as a general guide to understand and review this business process. Organizations should customize this tool to ensure that it reflects their business operations and continuously monitor the process to ensure that the steps described are accurate.
- Define and select financial reporting elements
- Select financial reporting element risk ratings
- Identify financial reporting assertions
- Define in scope applications
- Determine documentation standards