Since the enactment of the Sarbanes-Oxley Act in 2002, public companies have been required to maintain a system of internal controls over financial reporting. As a result, audit management has become an essential function for organizations in ensuring compliance with SOX requirements.
An effective audit management system helps organizations coordinate and oversee all aspects of the audit process, from planning and scheduling to conducting audits and issuing reports. In addition, audit management systems can help organizations track and manage audit findings, improving overall accountability and transparency.
With the passage of Sarbanes-Oxley, Congress aimed to increase corporate transparency and accountability in order to restore investor confidence in the wake of a number of high-profile corporate scandals. As part of this effort, SOX established new requirements for internal controls over financial reporting. Specifically, Section 404 of SOX requires public companies to annually assess the effectiveness of their internal controls over financial reporting, and report any deficiencies to shareholders and the SEC.
In order to comply with SOX requirements, organizations must have an effective system in place for managing the audit process. An effective audit management system will help organizations plan and schedule audits, ensure that audits are conducted in accordance with established procedures, track and manage audit findings, and communicate results to stakeholders. By implementing an effective audit management system, organizations can improve overall compliance with SOX requirements while also enhancing corporate transparency and accountability.