Change in narratives 3115

  • Good day
    I recently joined a company that has to comply with SOX. The auditors identified a few control failures and as a result the company changed one of their controls at a fixed date to make it more efficient and to remediate the control failure which was identified. Due to this change the SOX narratives had to be updated to reflect the actual process which had been put in place.
    The internal auditors informed us that we are not allowed to change SOX narratives during a financial year, however the external auditors did not have an issue with it.
    Please could someone advise me if we are allowed to change SOX narratives during a financial year or not?

  • There is no rule against that. It all comes down to how each company wants to manage its SOX documentation. That being said, I would support making changes to supporting documentation as soon as possible after controls changes are made, noting the effective date of any change.

  • Thank you

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