Printing Estimates 562



  • Marketing and Purchasing:
    Is it a SOX requirement to provide 3 bids, when requesting printing estimates from printing suppliers?
    Scenario:
    The person requesting printing supplier quotes is personal friends with the printing company vendor. She also had been employed for years at the same company.
    The question is, Is this scenario a CONFLICT OF INTEREST? and does it expose the company to NON compliance SOX status?
    Wondering if anyone can respond for my own edification



  • Your company would not be in contravention of SOX requirements. SOX requires that companies have anti-fraud programs and controls in place but does not specify the detail of what those should be.
    You outline a position in which a fraud COULD take place - but not that it definitely would. Obtaining several competitive quotes is one way to reduce the likelihood.



  • Do you know what the section code is relative the requirement that companies have anti-fraud programs and controls in place.
    Also is there anything in the SOX act you know regarding conflict of interest situation / scenario I depicted?
    If so can you provide a section code



  • It’s not in the wording of the act - but in the commentaries and guidance accompanying the final rules.
    Also see SAS 99 Consideration of Fraud in a Financial Stement audit, which includes guidance called ‘Management anti-fraud programs and controls.’ This states you should:

    1. Create a culture of honesty
    2. Evaluate anti-fraud processes and controls
    3. Have an anti-fraud oversight process.
      However the detail of how you might achieve these is largely left up to you - the exact controls are not mandated.


  • Marketing and Purchasing:
    Is it a SOX requirement to provide 3 bids, when requesting printing estimates from printing suppliers?
    Scenario:
    The person requesting printing supplier quotes is personal friends with the printing company vendor. She also had been employed for years at the same company.
    The question is, Is this scenario a CONFLICT OF INTEREST? and does it expose the company to NON compliance SOX status?
    Wondering if anyone can respond for my own edification
    No there is no such requirement in SOX.
    Yes it is a conflict of interest but does not expose the company to non-compliance.
    It is for your company to consider any fraud/ethical implications of this scenario and toi handle them as you see fit.


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