SOX Compliance Procedures

Pull all control documentation from last quarter. You're looking for gaps - anything that's changed but hasn't been updated. If it's not written down, it didn't happen, and auditors will remind you of that. Check that process owners have signed off on their controls. Missing signatures are a red flag that'll come back to bite you.

Build your testing calendar. You've got a lot of controls to test and not much time. Prioritize the high-risk ones first - those are the ones auditors care about most. Assign testers to controls based on expertise. Don't let the new hire test revenue recognition controls.

Run the actual tests. Document EVERYTHING. What you tested, how you tested it, what you found. Screenshots are your friend here. If a control fails, don't panic. Document the failure clearly and move on. You'll deal with it in the next step.

Every control failure needs a clear exception report. What went wrong, why it matters, and who's responsible for fixing it. Be specific. Auditors hate vague descriptions. 'Control didn't work' is useless. 'Approval was missing from 3 of 25 invoices sampled' tells a story.

Every exception needs a remediation plan with a clear owner and deadline. No owner? No deadline? It won't get fixed. Follow up weekly. Things slip when nobody's watching. The auditors won't accept 'we're working on it' as an answer.

Management needs to sign off on control effectiveness. This isn't just paperwork - they're putting their name on it. Give them time to review. Surprising your CFO with a certification request the day before deadline is a great way to make enemies.

Package everything for the external audit team. They'll want testing results, exception reports, and remediation status. Be proactive. Answer questions before they're asked. The smoother this goes, the cheaper your audit fees.