Management's assessment after adoption of AS5 2310

  • In 2006, we prepared management’s assessment based on ‘A Framework for Evaluating Control Exceptions and Deficiencies’. Now, for 2007, after adoption of AS5, will there be any change in the format ? Any suggestions will be helpful.

  • No. AS5 is guidance for the external auditors. The SEC issues management guidance. That being said, it would be wise to be aware of what is required of your auditors under AS5 so that your testing can be leveraged by them and, hopefully, help to keep their fees related to SOX work lower than if they could not rely on your testing.

  • I asked our auditors if there were any changes to this document since the release of AS5 and they said no. I then spoke with a colleague (another SOX Proj. Mgr) and was told there were changes, but received no specifics.
    I’m in the process of evaluating exceptions/deficiencies and am relying on the 2004 version of this document.

  • The only changes to COSO relate to the updated version for small businesses. I know that it exists, but have not looked through it compare with the original.

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