Time To Wait After ERP Implanting 2783



  • HELLO MY QUESTION IS:
    HOW LONG DOES A COMPANY NEED TO WAIT TO TEST CONTROLS FOR SOX Control Self Assessment AFTER AN ERP SUCH AS ‘SAP’ HAS BEEN IMPLANTED?
    AND WHERE I CAN FIND THE CLAUSE IN THE SOX ACT, WHAT SECTION PLEASE TO SUPPORT :?:



  • In principle, a company can test the effectiveness of its internal control over financial reporting immediately after the implementation of a new ERP system that is used for financial reporting.
    However, some transactions are not processed daily, but only weekly (e.g. payment runs, dunning/reminder runs), monthly (e.g. monthly closing entries), quarterly or annually. So some of those less frequent transactions may not already have occurred in the new ERP system and can thus not be tested yet.
    Neither the Sarbanes-Oxley Act nor any of the SEC’s rules that implement the act contain any provisions that specifically deal with the implementation of ERP systems or mandatory testing moratoriums/waiting periods after the implementation of ERP systems.



  • Thanks for your answer. So is there something official that can support this? Where I can find them in the act or is there a web link to support?
    Regards



  • As I said in my previous post, there is no provision in the Sarbanes-Oxley Act or in the SEC’s rules that implement the act that deals specifically with the implementation of IT systems.
    sec.gov/about/laws/soa2002.pdf
    sec.gov/spotlight/sarbanes-oxley.htm (check out the Final Rulemaking)
    pcaobus.org/Rules/Rules_of_the_Board/Auditing_Standard_5.pdf (this is the auditing standard that the registered public accounting firm uses when it audits the effectiveness of internal control over financial reporting)


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