Applicability of bills of materials 1389

  • Hi,
    In terms of IT systems that create/deliver bills of materials per customer order, it is not clear if Sarbanes Oxley pertains to them. On the one hand it can be viewed that bills of materials per customer order are fairly removed from the ledger applications. On the other hand the bills of materials do map to parts cost and errors in bills of materials could result in higher or lower costs which later on would be gathered by the financial systems. Can someone on the forum clarify if Sarbanes-Oxley pertains to IT systems that create and deliver bills of materials per customer order?

  • It does not appear that Bill of Materials is within the scope of Sarbanes-Oxley since it is not related to internal controls over financial reporting (ICFR). The generation of the Bill of Materials document is more aligned to Operational processes, which are not relevant for SOX.

  • Hi Milan, this is a good clarification, thanks for your help,
    Derek 🙂

  • Hi
    I have started a Topic to enlist the IT applications to be excluded from Sox
    I had included BOM in the list of non sox applications as per this thread
    But received a reply that it is a Sox application as it affects Inventory Accounts

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