Delegation of Authority 2177



  • How bad is it for a company not to have a DOA (approval authority list)?



  • It really depends on the size and structure of the company. In a small company, it is probably not necessary. In a larger or more complex business, it is something that you do need in order to maintain adequate controls over disbursements or commitments.



  • It really depends on the size and structure of the company. In a small company, it is probably not necessary. In a larger or more complex business, it is something that you do need in order to maintain adequate controls over disbursements or commitments.
    Seconded.
    A small company it may not need to be that formal but for larger companies it becomes essential.



  • ^ I agree and perhaps even in the smaller companies that operate with less formalized procedures, it might be beneficial for the SOX Compliancy leader to document this briefly anyway. It might be requested by SOX external auditors and would help facilitate their evaluations of company controls during a review.


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