Publicly traded manufacturer improves financial reporting control environment after SOX compliance review

Our client’s need

A publicly traded industrial manufacturer needed to determine if it had any control gaps surrounding financial reporting and IT controls that would prevent it from complying with SOX requirements under the direction of the internal audit director.

Baker Tilly solution

We assisted the company to re-engineer its IT and financial reporting SOX control environment by identifying control gaps and documenting control improvements, using a risk-based approach. We also assisted management in testing the design and operating effectiveness of the internal control environment. We worked closely with the Internal Audit Manager, financial reporting management, IT management and the external auditor to identify the appropriate in-scope IT systems and controls to meet SOX compliance.

Results achieved

We successfully assisted management in re-engineering the IT SOX program within the company and completed the design and operating effectiveness testing of the internal control environment for IT SOX compliance. As a result, external audit significantly increased its reliance approach placed on the IT systems tested by Baker Tilly. In addition, the company’s improved financial reporting control environment was more efficient and effective, and resulted in the control owners improved performance of controls. Baker Tilly has continuously served this client since 2015.

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