Quotations, signatures, and SARBOX 1824



  • Hi everyone,
    Our company provides automation to other large companies and in my job I put together quotations for the customer. I have been told that these quotations require signatures from different management levels, even if their are no special terms or discounts. The level of signature goes up as the value of the quote increases.
    I have been told that this is due to SARBOX requirements, but I don’t beleieve this is the case since SARBOX doesn’t have any specific operational procedures in it. Can anyone verify this?
    My problem is that getting this many signatures bogs down the ability to get quotes out to customers efficiently, and I don’t understand why everyone has to sign a quote that already meets the margin requirements of the company.
    Thanks for your insight
    terranaut



  • Management are probably trying to ensure that there is a sufficient line of approal fro non- standard/ non- documented pricing. It looks like in doing so, however, that they are hindering day to day operations.
    I would suggest that you highlight the issues here to your SOX team and try to agree together what the best approach to achieving their control objective would be.



  • Hi … While SOX itself doesn’t define specific autonomy levels and signature controls in detail, the implementation approach for a specific company could mandate this. This controls are typically implemented as part of the financial risk management process to reduce the potential of fraud and enhance the level of financial controls.
    However, this new control can create a ‘drag’ on the operational efficiencies or a burecracy that impacts the business. Based on your specific environment, I’d recommend bringing this to the attention of your manager, audit, or SOX compliancy leader.
    There might be possible compromises on the number/levels of signatures or workflow adjustments that might make this a little more efficient. Hopefully, you all can achieve an effective balance where you meet the improved framework financial controls for SOX without impacting productivity or efficiency.
    Good luck to you all 🙂



  • My problem is that getting this many signatures bogs down the ability to get quotes out to customers efficiently, and I don’t understand why everyone has to sign a quote that already meets the margin requirements of the company.

    Can you make changes to the quoting process to make it more effcient while at the same time, complying with the new signature authority rule? For example, can you get people to approve the quote electronically?



  • Can you make changes to the quoting process to make it more effcient while at the same time, complying with the new signature authority rule? For example, can you get people to approve the quote electronically?
    Excellent Advice … I always like working with Audit and going to an electronically based workflow where possible 🙂


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