SOX impact of asset acquisition 1705

  • Good morning.
    I was wondering if anyone can point me to guidance regarding the SOX impact of my company’s acquisition of another company’s assets. They didn’t purchase the company, just the assets. Aside from recording the sale properly on G/L and the HR and Payroll effects and the testing it will involve, I want to identify other considerations.
    Thanks for reading.

  • Seems to me from the information you provided that your controls surrounding the following topics should be a good start for discussions with your external audit team:

    1. Who has authority to approve the purchase (BOD / Executives, etc)
    2. Who has authority to write the check
    3. JE approvals to post the transaction to the system
    4. Adding the items to your fixed asset register and properly depreciating them, etc and then including the items in your annual count
    5. Sounds like you may have acquired people so yes, HR/Payroll related controls including any background checks, etc
    6. Financial reporting controls to review/publish all the related data
      That should about cover it. I’d be happy to discuss this further - feel free to give me a call or drop me a note:
      Teresa Bockwoldt
      Senior Manager - Frank, Rimerman Consulting

  • Many thanks Teresa.

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