Sarbanes-Oxley Auditor Walkthrough Guide

Auditors are required to perform at least one walkthrough for each significant class of transactions. Walkthrough procedures include the external auditors tracing a transaction from origination through company information systems until it is reflected in company financial reports.

Walkthroughs also consist of the auditors interviewing several personnel about their understanding of what is required by the company’s prescribed procedures and controls and determining whether the processing procedures are performed as originally understood and on a timely basis. Walkthroughs are used by auditors to provide evidence to:

• Confirm a complete understanding of the transaction process flow and the design of the control.
• Evaluate the effectiveness of the design of the controls.
• Confirm whether the controls have been placed in operation.

This sample document can be used as a guide to help prepare company personnel for the walkthrough process related to Sarbanes-Oxely Section 404 compliance.