One More Dumb Question 344



  • The purchasing agent at my company seems to think that warehouse personnel who do posting/receiving should not be able to change dollar amounts, or have access to this field on a purchase order as this would violate SOX. Is this true? Can anyone show me where to find this topic? Thank you.



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  • It depends on what your other controls are, but I would agree with your purchasing agent. Preventing them from chainging the amount is easier.



  • I continue to be amazed that folks just don’t seem to get it.
    There is nothing in SOX requiring one control technique or another, it does require the CEO and CFO to be accountable for the controls in place over financial information and the presentation of the financial statements and to make periodic assertions to that effect. It also requires an external audit opinion be expressed on those assertions.
    To use SOX as a reason or justification for employing a control is like saying we have to do this or that because ‘audit’ says so, you are missing the point.
    Whether or not to use a given control technique must be an informed, risk aware BUSINESS decision. Not allowing receiving clerks to alter the dollar amounts on purchase orders does sound like a prudent control, but it must make sense from your business’s perspective.



  • I continue to be amazed that folks just don’t seem to get it.
    I am not at all surprised. There has long been a fundamental weakness in the US in relation to governance which has afflicted the audit profession and the regulators and has resulted in a very checklist oriented approach. As a result you get people trying to address SOX by saying tell me the the boxes I have to tick to comply.
    Fortunately the legislators have taken a different approach with SOX and have defined principles and accountabilites rather than proscribing rules. This is a much better way of doing things but is quite different for many- it will take a bit of getting used to.



  • Thx for the info. I really aprreciate it.


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